| According to the Small Business Administration, over | | | | Excessive Spending Evaluate your expenses and ask |
| 50% of small businesses fail in the first year and | | | | yourself some hard questions. For example, do you |
| 95% fail within the first five years. This is further | | | | need to purchase the newest equipment or can you |
| supported by Harlan Platt, author of "Why Companies | | | | buy used? Also consider developing some type of |
| Fail, who claims that a business fails every hour in the | | | | control system that will track and monitor your |
| United States. It's a harsh statistic but a reality for | | | | expenses. |
| many new entrepreneurs. The numbers are not | | | | No Cash Reserve or Working Capital When times are |
| meant to scare you away from starting a business, | | | | going well for your business, set aside some of your |
| but underestimating how difficult it can be to start | | | | resources for a rainy day. Consider investing your |
| and run a business is one of the largest obstacles | | | | spare capital in a money market or mutual fund. That |
| that new business owners have to overcome. | | | | way it will be there when you need some working |
| Businesses tend to fail because they have: | | | | capital. |
| An unrealistic or inadequate strategic plan Many new | | | | Poor Financial Record Keeping Ultimately, it is your |
| business owners fail to develop a strong strategic | | | | responsibility as the business owner to know how |
| plan or to set realistic business goals. Be sure to | | | | much money is coming into your operation and how |
| create specific goals that include deadlines and a | | | | much money is going out. Maintaining detailed books |
| formalized plan to achieve them. Revisit your business | | | | and an appropriate financial statement of your |
| plan on a regular basis. | | | | business is necessary. Always keep your records |
| Poor customer service Customer service is no longer | | | | current and detailed. |
| a benefit. It is an expectation. Failure to provide a | | | | Tax Problems Whether you want to or not, you are |
| strong focus on customer service can easily spell | | | | going to have to pay taxes. So, follow the rules and |
| doom for your business. This is particularly true for | | | | pay on time. Getting behind with Uncle Sam can only |
| fitness providers that are service-oriented businesses. | | | | result in unnecessary government pressure, penalties, |
| Take the time to educate and train your employees | | | | and late fees. Over time, this can become an |
| to provide great customer service. | | | | overwhelming amount of money. |
| Insufficient Marketing Advertising, promoting and | | | | A Lack of Business Knowledge Operating a business |
| selling to potential customers is an on-going | | | | involves more than just sales and great customer |
| commitment. A marketing and advertising campaign | | | | service. As a business owner, you owe it to yourself |
| must occur year round in order to prove effective. | | | | to become more knowledgeable about operating a |
| Poor Employee Training Under trained or poorly | | | | business. Take the time to read books, take courses, |
| trained staff can frustrate customers. It's a no | | | | and seek professional advice whenever needed. |
| brainer to assume that frustrated customers leave | | | | So, ensure you heed the advise of the many |
| and go elsewhere. Invest the necessary resources | | | | businesses before you as to not end up one of the |
| and time in training your staff. | | | | statistics. |