Why do business fail at the early stage?
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From the article "Surviving the First 1,000 Days of Your New Business" http://www.powerhomebiz.com/vol3/survival.htm here are the common reasons why new businesses fail: \n\n1. Under Capitalization.  Lack of funds is the number one reason for failure. Many entrepreneurs fail to plan properly, expanding too soon or spending unwisely, and don't get enough money to keep the business going for a certain period of time. \n\n2. Poor financial management. If you are weak in financial management, it is best that you hire a professional accountant or bookkeeper, even on a part-time basis. It is important to constantly know where you stand financially.\n\n3. Miscalculated market potential. Making business presumptions without taking the time to learn your target market is a serious pitfall for any starting entrepreneur.\n\n4. Ineffective Marketing.  Study carefully how you will attract and sell to customers. Formulate your advertising and sales philosophy using the most appropriate media, timetable and budget for your promotion efforts.
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Babies always have to suffer agony when they are cutting their first teeth.  It is to be expected that when a business first starts it is going to encounter problems, but these problems are then sorted out and soon forgotten, just like the pain suffered by the baby at that early stage of his life.
87771
Sales. High failure rate, though.
108517
false many things could be causeing the returns to the firm. fewwer sales, or incressed cost to stay in business could be the cause.
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Any small venture can be successful as long as:\n\n- There is demand for the product. People must want and buy the products. Otherwise, no amount of marketing can help the business. If there are no sales, the business will just be a cash drain for the owner\n\n- Adequate startup capital and proper management of resources. Lack of capital is the main cause of the failure of small businesses. If capital is insuffient, the business owner can either step up efforts to look for capital, scale back the plans or suspend the project altogether\n\n- Healthy profit margins. If your profit margin is only 2% -- and prices and inventory cost increase -- then your margin will be squeezed out. A small business can succeed if it is operating good profit margins that can help it withstand market shocks and price increases.\n\n- Good revenue per sale: if the profit per sale is only $1, then to make $100,000 the small business need to sell 100,000. A small business may find it harder to do tremendous amounts of volume.\n\n- Good niche area. A small business may find it hard to compete head on with Amazon.com or Walmart, for example, trying to be everything for everyone. But if the small business can focus on one area -- and be very good at it -- then it has better chance of growth.\n\n- Good cash flow management. A small business may have sales, but if it cannot collect payments and run out of cash, the business will have a hard time.\n\n- Growth prospects of the business and how growth is handled. A small cleaning business can only handle certain number of accounts effectively and efficiently, and profits will plateau. To grow, the business either needs to expand its staff to be able to handle more accounts or expand the area of coverage. Either way, how the business owner handles growth, and all its accompanying problems, can spell the difference between success and failure.\n\n- Suitability of the business with the entrepreneur. The entrepreneur is the heart of the business. Sometimes, the entrepreneur is the business (if it is a 1-person operation). The business owner must have the passion and drive to push the business to success.The person must be able to spot new opportunities and learn how to handle the challenges. Otherwise, if the entrepreneur loses interest, then the business may die.
47722
Very little is profitable early on in the life of a business line.  The real rewards come from developing the business and even by developing the 'industry'.
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Base on research, 8 out of 10 new businesses will fail. So only 2 will work.
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It is bad luck for anyone with a birthdate on 25 Oct to start a business.\n\nCoach
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Any small venture can be successful as long as:\n\n- There is demand for the product. People must want and buy the products. Otherwise, no amount of marketing can help the business. If there are no sales, the business will just be a cash drain for the owner\n\n- Healthy profit margins. If your profit margin is only 2% -- and prices and inventory cost increase -- then your margin will be squeezed out. A small business can succeed if it is operating good profit margins that can help it withstand market shocks and price increases.\n\n- Good revenue per sale: if the profit per sale is only $1, then to make $100,000 the small business need to sell 100,000. A small business may find it harder to do tremendous amounts of volume.\n\n- Good niche area. A small business may find it hard to compete head on with Amazon.com or Walmart, for example, trying to be everything for everyone. But if the small business can focus on one area -- and be very good at it -- then it has better chance of growth.\n\n- Good cash flow management. A small business may have sales, but if it cannot collect payments and run out of cash, the business will have a hard time.\n\n- Growth prospects of the business and how growth is handled. A small cleaning business can only handle certain number of accounts effectively and efficiently, and profits will plateau. To grow, the business either needs to expand its staff to be able to handle more accounts or expand the area of coverage. Either way, how the business owner handles growth, and all its accompanying problems, can spell the difference between success and failure.\n\n- Suitability of the business with the entrepreneur. The entrepreneur is the heart of the business. Sometimes, the entrepreneur is the business (if it is a 1-person operation). The business owner must have the passion and drive to push the business to success.The person must be able to spot new opportunities and learn how to handle the challenges. Otherwise, if the entrepreneur loses interest, then the business may die.
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Often times, the company's product isn't exactly up to par or the competition is catching up.  So, the people will lie to close the deal and hope that the company can exceed expectations later on and come up with the a good product.  It doesn't always happen.\n\nIt's generally how sales goes.  They don't usually lie outright but might fiddle with the "truth" a bit and exaggerate.
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Youre too young.  Your product will be poor quality and your business will fail.  Give it another thought in about a decade.
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Maybe it's not that they don't want to improve, but more simply, don't want to change. If things are running well (or sometimes even not so well), they may just want to keep things as is.\n\nWhich is counter to the entrepreneurial spirit that drove them to begin the business in the first place. But you have to understand that having taken a huge risk, if there is a small amount of success (or even lack of failure), it is such a big relief for some that maintaining the status quo becomes priority.\n\nIn my opinion, this is against the entrepreneurial spirit. But to each his own.
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I have a very close friend that works there. If you don't succeed in the business they get rid of you very quickly. It's a cut throat company and if you are not bringing in money you're gone. They need to recruit and hire people very often because they have what you can call "a revolving door". People come in, fail, and leave. You must be a strong and dedicated sales/people person to succeed in that company.
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You are right, and many don't succeed. \n\nI have been in the home business arena for several years and I have seen a lot of entrepreneurs starting their businesses with no direction whatsoever. Business planning, especially among home based entrepreneurs, is almost non-existent. They consider it as a useless exercise as they feel they are not going out to pitch their businesses to banks or venture capitalists. \n\nMany simply read a sales pitch, get excited with the sales copy, then immediately buys into the business opportunity thinking that they will make it big with that business. Some of those who advertise in my website would promote one business this month, only to promote a new one two months down the road because the first one did not fly.\n\nThere are those who learn and adapt quickly who succeeds. But for every success story, there are more failures.
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NEVER be afraid of failing.  If something doesn't work out the way you planned, you just learned something new.\n\nBe more afraid of fast and easy success.
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By keeping close track of costs and revenues, management can often eek out a little more profit by the end of the reporting period.  Running more efficiently is always a goal of most businesses out there.  This helps enhance growth because the profit is growing at the fastest rate possible.
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Most businesses have similiar issues no matter their product.\n\nCheck out the outline on the small business administration website.  It will take some time to do but I strongly advise you do it for several reasons.  It will make you consider all the details of your business and you can provide it to potential investors who will gauge your likelihood of success (and security of their investment).\n\nGood luck.