What is the cause of most business failures?
Most businesses are unsuccessful because they fail to: • plan properly, • monitor financial statements, • understand pricing, • monitor cash flow, • manage growth, • borrow properly and/or • plan for transition periods. A sound, well-thought-out business plan will anticipate and help your business avoid these problems. A good business plan accomplishes the following: • It allows the new business owner to determine the feasibility of the proposed business and identifies its start-up requirements. • It provides a basis for outside investors and banks to determine whether to invest in or lend money to the business. • It provides the groundwork for more detailed operational plans and serves as a valuable management tool for monitoring and planning future growth. The businesses with the highest SBA loan failure rates are drinking establishments; plumbing, heating and air conditioning contractors; drug stores; furniture stores; and commercial printers. The businesses with the lowest failure
