Ten Key Reasons Why Small Businesses Fail
Potentially Fatal Errors You Must Avoid
- Lack of an adequate, viable business plan
- Insufficient sales to sustain your business
- Poor marketing plan: unappealing product, poor customer identification, incorrect pricing and lackluster promotion
- Inadequate capital, misuse of capital and poor cost control
- Poor management skills: lack of delegation, leadership and/or control
- Lack of experience and knowledge
- Lack of managerial focus/commitment
- Poor customer service
- Inadequate human resource management
- Failure to properly use professional advice: i.e. accounting, legal, financial, etc
How SCORE Can Help You Avoid These Fatal Errors
- SCORE volunteers will help you develop a sound business plan that reflects your needs
- Identify effective ways to gain additional orders
- Together with a SCORE volunteer you will construct a plan that identifies key customer targets, major competitors and customer expectations
- A SCORE volunteer will help you create a plan to manage capital and reduce costs
- SCORE volunteers are ready to mentor you as you manage your own company
- You must understand your business and industry. SCORE volunteers will share their business experiences with you and SCORE workshops can help you learn about managing your business
- SCORE volunteers will help identify key goals and how to achieve them
- Together with your SCORE volunteer, you will develop processes that will improve service and customer satisfaction.
- Your SCORE volunteer will help you develop a sound human resource management plan
- Your SCORE volunteers can give you the names of a number of professionals that can help you.
While being successful is our mutual goal, SCORE recommends you have an exit plan from the business in case of illness, changed business conditions, e.g. competition, business cycles or other problems. A comparison of your business plan projections with actual results over time should identify trends and help determine your options. It is senseless to pour additional funds or incur further debt to sustain a failed operation.