WAYS TO AVOID FAILURE IN SMALL BUSINESSES

Nearly 90 percent of people state that at some point in their lives they've dreamed of starting their own business, yet few make the initial effort. Often it's due to lack of funds or personal commitment, or just the fear of failing. And although it's true that only about ten percent of new businesses do succeed, the reasons why the other 90 percent fail appears to be related to the lack of planning, primarily financial. Starting your business on the home front is one way to reduce start-up expense and risk. The founder of Dell Computers was a college dropout. Starting out of his garage, he managed to excel above all of the world's top computer manufacturers. One in three computers sold today is a Dell.

Business start-up and general business operations can be expensive. Things such as commercial space rent, utilities, and added insurance costs can consume a great portion of business profits. Obviously, the less expenditures each month equals more in pocket income. Keeping costs down is one way to improve the odds of long-term growth and success for any business. Since as many as nine out of ten new businesses close in their first year, and knowing that the primary cause of those failures is lack of financial planning, you can see how important it is to create a doable financial plan for your business start-up and long-term expense.

If you are considering starting up a business of your own, do the proper planning. Research the industry you're interested in, and see where the closest competition is. Read books and get yourself educated about your new business. Avoid taking large loans to fund your new venture. Instead, keep your business idea in proportion to the amount of money you have to invest. There's always a way to work out your idea without exceeding your means. And if it's at all possible to start your business from your home, do it.
courtesy:Carol Denbow

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