A predictable question always asked is, "Why do small businesses fail?" There are certainly many reasons for failure...and reasons why many of these failures should never occur.
March 24, 2014 (Newswire) - A predictable question always asked is, "Why do small businesses fail?" There are certainly many reasons for failure...and reasons why many of these failures should never occur.
Richard Weinberger, CEO of the Association of Accredited Small Businesses Consultants, discusses some reasons for business failure...and remedies.
Core business functions - Not having a wide diversity of knowledge in all core functions of a business is necessary for a small business to survive, grow, and be successful over the long-term. Many small business owners assume that having technical knowledge of the business is enough; however, understanding all core functions is necessary for survival and success.
Plans for the future -Many small businesses automatically assume that developing a strategic plan is only for large businesses. Planning for the future is for all size businesses. Rather than operating day-to-day, hoping for the best, doing nothing to improve operational efficiency, and making no plans to achieve certain goals leaves a small business floundering not knowing what to do to improve the prospects for success.
Business finances -Small business owners do not need to be accountants, but they do need to have a basic, fundamental understanding of their business finances. What product or service line has the highest profit margin? What expenses are out of line? Cash management is critical for a small business.
Eyes of the customers - Small business owners should step into the shoes of their customers and "see what customers see." Owners should ask themselves, "If I am a customer, what would I like and dislike about this business?" Or, "How is the competition better than me?" Customers want benefits and solutions to their problems. When owners understand this and determine how benefits and solutions will be provided, a small business will then grow and prosper.
About the Author: Richard L. Weinberger, PhD, CPA, has over 30 years experience as a business owner, consultant, and professor dealing exclusively with small businesses. He holds a PhD degree in organization and management, an MBA in management, and two BBA degrees - one in marketing and in accounting. Dr. Weinberger currently serves in the capacity as the Chief Executive Officer of the Association of Accredited Small Business Consultants (http://www.aasbc.com) and authored the SEMP Approach: Simplified Examination to Maximize Profitthat is the foundation of the educational training for the association. He is also a Certified Public Accountant, has held numerous other professional designations, and is a contributing guest expert to AllBusiness.com, one of the world's largest online resources for small businesses.
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