Page 11 - THE NOTICEBOARD EDITION 63 OCTOBER 2020
P. 11
September, 2020 Page 11
Why Small Businesses Fail: Reasons for Startup Failure
owner started the business. Is to help you succeed the
your primary reason for starting next time around. Studies
your own business the desire to of successful business
make a lot of money? Do you owners have shown they
think that if you have your own attributed much of their
business that you'd have more success to "building on
time with your family? Or maybe earlier failures;" on using
that you wouldn't have to answer failures as a "learning
to anyone else? While those are process."
benefits some successful
· Y o u t h r i v e o n
entrepreneurs achieve after independence and are
years of hard work, they are not
reasons to start a business. skilled at taking charge
The right reasons for starting a when a creative or
h y d o s m a l l business - reasons that lead to intelligent solution is
businesses fail? building a successful company needed. This is especially
WBusiness failure isn't include these: important when under
something you want to think strict time constraints.
· You have a passion and
about when you start a · You like -- if not love --
business. But if you want your love for what you'll be your fellow man, and
business to succeed, you need doing and strongly believe show this in your honesty,
to know and avoid these 8 -- based on educated integrity, and interactions
c o m m o n r e a s o n s w h y with others. You get along
businesses fail. with and can deal with all
According to statistics, about d i f f e r e n t t y p e s o f
twenty percent of business individuals.
startups fail in the first year.
About half succumb to 2. There's No Market or Too
business failure within five Small of a Market
years. By year 10, only about The best business ideas will fail if
33% survive. Those statistics there isn't a market for what you
are rather grim. And this year sell, or if the market suddenly
(2020), small and medium d i s a p p e a r s b e c a u s e o f
scale businesses are an even economic changes or natural
bigger worry because of disasters. While you can't
coronavirus-related declines in predict disasters, before you
s a l e s . start a business you need to
determine if there's a market for
While there are a multitude of study and investigation -- what you plan to sell and if that
conditions that can result in a that your product or market is big enough to be
business failing, most years, service would fulfill a real
the reasons small businesses need in the marketplace.
go out of business is because · Y o u h a v e d r i v e ,
they make one or more determination, patience,
common mistakes. Here are and a positive attitude.
the top eight reasons for When others throw in the
business failure and what you towel, you are more
can do to avoid them. determined than ever.
· Failures don't defeat you.
1. You start your business for You learn from your
the wrong reasons mistakes, and use these
The reason for business failure lessons as business tips
is often tied to the reason the
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