subject: How Small Businesses Can Succeed [print this page] According to government statistics there are a lot of small businesses that all fail for some fairly common reasons. If you are a small business owner understanding these reasons is key to running a successful business of your own as it will help you avoid the same pit falls that have ruined so many other businesses. This article is going to cover just a few of the major ones and discuss why they are so important.
First of all small businesses are notoriously undercapitalized. This means that the company does not have enough money to really get up and going. Many small businesses owners are risk averse, and for good reason. These entrepreneurs are usually putting their own financial well being on the line whereas some big shot working for a large corporation is not actually playing with his own money. This means however that the small business owner is going to have a lot of emotional bias in his or her decision making. This can be dangerous and as a result small business owners are usually afraid to invest the money that it takes to really get their ideas off the ground.
One of the other major mistakes that small companies make is that they don't pay enough attention to the internet. There are more and more people getting online every day and virtually every company in America today has a legitimate functioning website. If your business does not then it is time to get with the times. There are literally thousands if not millions of people who will learn about your company just from doing an online search in Google or another search engine. This is advantageous because overnight your company can turn from a small local owned and run business to a company which ships its products all over the globe. And what are the costs involved? The price of a domain name and paying some twenty something college kid to design the site for you.
Another important facet in small business ownership is proper management. The truth is that many people who start businesses don't have the first clue what they are doing. Many people have spent their entire lives doing other things than running businesses and therefore they have no background in things like finance, accounting, marketing and others. To solve this it is imperative that a firm hires a competent management team so that this responsibility can be shared.
