How to Save a Struggling Small Business
The leading cause of business failure is insufficient cash flow. If that wasn’t startling enough, here are the other top reasons why small businesses fail:
79 percent fail because they start with too little money
78 percent fail because they lack a well-developed business plan, including insufficient research on the business
77 percent fail because they didn’t price things properly or failed to include all necessary factors when determining prices
73 percent fail because they were overly optimistic about achievable sales, money required, and what they need to do to be successful
70 percent fail because they don’t recognize, or accept, their weaknesses and don’t seek help from others
We’ll take a closer look at the common reasons for failure in the next chapter, but it’s no wonder many small business owners easily lose confidence and give up too quickly instead of plowing through the tough times. But in many cases, that’s the exact opposite reaction small business owners should have.
Despite these staggering statistics, there are things you can do to improve the health of your business and turn things around.