"Ten Shocking yet common reasons why small businesses fail."

Small businesses are perhaps more common now than they were in previous years. Many people are now aspiring to own their own businesses, because of the uncertainty of the job market. Even those who have had jobs for long periods of time are trying to find what they consider a plan B, in the event that their long-term jobs don’t work out. Truth of the matter is that whatever happens, whether they remain employed or not, the bills still arrive every month. So if one desires to own any kind of assets, for the business or for themselves, then it is imperative that these bills be paid.

Many of these businesses are unable to stand the test of time and many fail a short time after the startup. The statistics of new businesses that fail in today’s society amounts to four out of ten that will not make it to five years. Some of the reasons why small businesses fail include:

• 1.       Inadequate funding
• 2.       Failure to plan
• 3.       Lack of proper structure
• 4.       Wrong choice of staff
• 5.       No proper accounting system
• 6.       Competition too strong, or underestimation of the competition
• 7.       lack of advertising
• 8.       Lack of vision for the company
• 9.       Poor management
• 10.   Poor Customer Service

The most common reason being number one on the list. Most businesses offer credit to customers, some of who will in turn experience hardships which results in their inability to pay for the goods or services that were extended to them on credit. This can cause the business to have a lot of cash tied up in creditors and hinder them from paying their bills when they fall due. Proper funding is important for any business and many people will start a business and invest their own funds. Many are unaware that funding is available, so they take the route that is commonly known to them.

The Business Funding Centers in your area offers information on how to secure funding for your small business on their website. Business owners can visit the site to see if they qualify to receive funding for their businesses. Business owners can search through a list of 581 Government programmes which offer funding to new businesses. If owners are unsure as to whether or not they need, or will qualify for funding, they can look at the list of recipients, read their success stories, or even browse the questions in the FAQ section. The resources that are provided can assist anyone who is interested in starting a new business, or business owners who are in need of a way to provide adequate funding for their cash-strapped businesses.

They can choose from a variety of programmes that can help them in their endeavor. Government programmes, grants and loans are available if the business qualifies. The first step is actually seeing if it qualifies for funding.