Top Reasons Small Businesses Fail

HBIF Meeting 12-09

Administrator

Nicole RoachMarketing Coordinator

BizCentral USA

Key Speaker

Michael Miller

Director of Business Development

BizCentral USA

• Introduction to the top reasons small businesses

fail

• The current state of entrepreneurs & small

businesses

• Characteristics that can make or break any

entrepreneur

• The top 5 reasons for small business failure & how

to avoid those dire mistakes

This Year I’mGoing to….

Start a Business

• Americans dream of

owning their own business

for variety of reasons:

Pride of ownership

Flexibility

Tax breaks

Prove people wrong

Personal development

Money

50% of Businesses

go “Belly-up” in

the First Year

1/3 of New

Businesses do

not Make it Past

the Second Year

Only 44% of New

Businesses

Survive up to

Four Years

Joe

Entrepreneur

Confidence

Organization

Skills

Desire for

Responsibility

Good Money

Manager

Competitive

Nature

Goal Setter

Risk Taker

A Head for

Business

• Build a Solid Capital Structure

Keep Strict Money Records

Set Aside Seed Money

Evaluate Want vs. Need

• Consider location in regard to:

Customers

Suppliers

Employees

Government regulations.

• The selected site SHOULD meet the business’

needs.

• Learn how to market cost-effectively and time-

effectively.

• Target your marketing efforts with intense research.

• Create a marketing plan with a budget.

• Excel at customer service – Word of Mouth is one of

the strongest marketing tools!

• Focus on the 4 P’s

• Keep your friends close, but your enemies closer!

Know their promotions and special offers

Know about updates they make to their website and new

communication methods they are using.

• Create your unique selling proposition and push it.

Emphasize your USP in your promotions and marketing.

It is your USP that will attract prospects to your business

rather than your competition.

YOU MUST HAVE A

BUSINESS PLAN!