When Small Businesses Have Big Problems

Steps to avoiding common small business start-up problems.

The unfortunate truth is that over half of new businesses fail within the first two years. Some fail because the business concept was ill conceived or because of external factors such as a deteriorating economy. However, most businesses fail due to the owner’s decisions. Here are some common currents you should try to avoid.

Gear Up For Start-up
Starting a business is difficult, time consuming and expensive. Everything from choosing a name, handling all the paperwork, setting up a location, getting supplies and staffing takes time and effort. And everything costs money. So be prepared for hard work, decision-making and disappearing dollar signs.

Consider the Issues
There is bound to be a significant lag between the time you start your business and initial profit. During that time, make sure you have the funds to pay start-up costs and cover your normal living expenses. Depending on your business, you may also need to prepare for the lag between services and payment and the expense of maintaining inventory.

From Billboard to Print Ad
Make sure you develop an evolving marketing plan that identifies potential customers, makes the benefits of your product visible to prospects and motivates them to make a purchase decision.

Location, Location, Location
When businesses find a good location, they often commit to a long-term lease. The problem is, traffic patterns change, competitors move close by and needs change, so don’t commit without considering these possibilities.

Insurance
You’ve invested your heart and a lot of money into this venture so be sure that you are protected against loss. Even if your business is located in your home, your equipment and files are all still at risk. Talk to us now before you start that business so you start off on the right foot. Feel free to give us a call for a no obligation consultation.