why do small businesses fail? inexperienced management lack of vision and business knowledge poor...

Why do small businesses fail?Why do small businesses fail?

Inexperienced ManagementLack of Vision and Business Knowledge

Poor Planning

Market Research. • Find out if there's any genuine market for

their product and/or services• People start businesses because they want to

do a particular thing or love a particular product….it's not about you, it's about them - your potential customers.

• Make a business plan - you'll do the market research you need to do and find out whether or not there is a market for your product.

Things to eat in Walden

Money

• Before starting a small business, you need to figure out how much money you need to live

• How much money is needed to run your business.

• You can't ignore the money and just assume that somehow enough of it will come in each month. Nor can you ignore your bills.

Is There a Demand for It?• This is the part

that's about you and you have to get it right or your small business is doomed.

• Too many people leap into selling their product or service without even considering the answer to this basic question.

Plan for Growth

• Plan for success. • What happens if you don’t want

the business anymore?• Sell the Business?• Hunt for a buyer – put plans on

hold – train others – find someone with skills/interests that match business

• Create a transition plan – bring in new partner so you can move forward rather than waiting around

Exit Strategy• If you want to sell a business, it has to

be saleable. • Many small businesses aren't because

they're dependent on one person's talents and personality.

• Others might be if a person gets their business into selling shape.

• But is selling in the open market the best possible exit strategy for you?

• The best time to choose an exit strategy is when you're starting a business, not when you want to get rid of it.