Top Reasons Small Businesses Fail
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Transcript of Top Reasons Small Businesses Fail
HBIF Meeting 12-09
Administrator
Nicole RoachMarketing Coordinator
BizCentral USA
Key Speaker
Michael Miller
Director of Business Development
BizCentral USA
• Introduction to the top reasons small businesses
fail
• The current state of entrepreneurs & small
businesses
• Characteristics that can make or break any
entrepreneur
• The top 5 reasons for small business failure & how
to avoid those dire mistakes
This Year I’mGoing to….
Start a Business
• Americans dream of
owning their own business
for variety of reasons:
Pride of ownership
Flexibility
Tax breaks
Prove people wrong
Personal development
Money
50% of Businesses
go “Belly-up” in
the First Year
1/3 of New
Businesses do
not Make it Past
the Second Year
Only 44% of New
Businesses
Survive up to
Four Years
Joe
Entrepreneur
Confidence
Organization
Skills
Desire for
Responsibility
Good Money
Manager
Competitive
Nature
Goal Setter
Risk Taker
A Head for
Business
• Build a Solid Capital Structure
Keep Strict Money Records
Set Aside Seed Money
Evaluate Want vs. Need
• Consider location in regard to:
Customers
Suppliers
Employees
Government regulations.
• The selected site SHOULD meet the business’
needs.
• Learn how to market cost-effectively and time-
effectively.
• Target your marketing efforts with intense research.
• Create a marketing plan with a budget.
• Excel at customer service – Word of Mouth is one of
the strongest marketing tools!
• Focus on the 4 P’s
• Keep your friends close, but your enemies closer!
Know their promotions and special offers
Know about updates they make to their website and new
communication methods they are using.
• Create your unique selling proposition and push it.
Emphasize your USP in your promotions and marketing.
It is your USP that will attract prospects to your business
rather than your competition.
YOU MUST HAVE A
BUSINESS PLAN!