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