By Evan Vitale
No one likes to see a small business fail (well, except for your competition). Shuttered businesses means unemployment for staff, possible debt and legal troubles, personal problems. The list goes on and on.
Here are some other reasons why small businesses fail.
(6) Personal Use of Business Funds. This can happen when you don’t keep business funds and personal monies separate. Sometimes, business owners will take a large draw which causes the business to suffer financial troubles. Yes, business owners need to pay themselves, but don’t be tempted by a large bank account for your business. Business money needs to remain in the business.
(7) Lack of Delegation. Small businesses can fail when the business owner doesn’t delegate enough duties to employees. Too many times, we think we need to do everything ourselves which causes a business owners’ time to be spread too thin. You have employees, trust them and delegate more responsibilities to them.
(8) Not Diversifying. Some businesses fail when they focus too much on one product or one service or, for that matter, one big client. This leaves you prone to potential failure.
(9) Taxes, Licenses and other Paperwork aren’t Filed On Time. If a small business owner tries to be the banker; the lawyer and the accountant, they can quickly get buried by paperwork and deadlines. Rely on the professionals to ensure you’re getting the proper business licenses; paying employee with holdings on time and filing the necessary tax returns and other forms.
(10) Lack of Commitment to your Business. Yes, at first, you loved your business idea and you were pretty excited to get up every morning and get to work on your business. However, you burned out or lost your personal commitment to keep the business alive and growing. Sometimes, a vacation or help from a business coach can help you get the fires burning bright for you and your company.
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