Page 180 - Introduction to Business

154 PART 1 The Nature of Contemporary Business

EXHIBIT 4.11
Common Causes of Small Business Failure

• Choosing a business that is not very profitable
• Inadequate cash on hand to carry the business through the first six
months or so before it starts making money
• Failure to clearly define and understand the business’s market, customers,
and customers’ buying habits
• Failure to price the business’s product or service correctly
• Failure to adequately anticipate cash flow in terms of expenses for inven-
tory and later receipts on sales
• Failure to anticipate or react to competition, technology, or other changes
in the marketplace
• Trying to do everything for everyone, which leads to spreading the busi-
ness too thin and so diminishes quality
• Overdependence on a single customer
• Uncontrolled growth, as going after all possible opportunities drains the
business’s cash and actually reduces overall profitability
• Managers believing they can do everything themselves, instead of delegat-
ing authority to others
• Inadequate management, which commonly occurs as a company grows
and individuals’ abilities to manage and plan become ill suited to the
new situation

Source: U.S. Small Business Administration, Office of Advocacy, Washington, DC, 2003 (http://www.sba.gov/).

Careers in Small Business

There are so many small business opportunities out there that it can be difficult to
decide on the best choice for you. The U.S. Department of Labor has established a
comprehensive database named the Occupational Information Network (O*NET)
at whose website, http://online.onetcenter.org/, job seekers can learn about the
skills required for particular occupations. Links to other valuable Internet resources
are provided, including wage and occupational trend information and job accom-
modations for those with disabilities.
According to Assistant Secretary Emily Stover DeRocco, head of the depart-
ment’s Employment and Training Administration, “This tool identifies the require-
ments of the twenty-first century workplace so that employers and job seekers can
speak the same language about job opportunities. Hiring better suited workers
increases the job satisfaction of workers and retention of employers.” Not sure
about what occupations are right for you? O*NET allows you to explore opportuni-
ties on the basis of your personal qualities and preferences.
Another good source of information on careers is the U.S. Small Business
Administration’s website at www.careers.org. You can get career advice, distribute
your resume, and check available jobs that are listed there. The website also has
links to small business information by state.

Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.