Get Adobe Flash player

Posts Tagged ‘chapter 11’

Why 50% of businesses fail the first year and 95% the first 5 years

The U.S. Small Business Administration has seen lots of small businesses come and, unfortunately, go.   According to the SBA, over 50% of small businesses fail in the first year and 95% fail within the first five years. Why? What goes wrong?
In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

1. Lack of experience
2. Insufficient capital (money)
3. Poor location
4. Poor inventory management
5. Over-investment in fixed assets
6. Poor credit arrangements
7. Personal use of business funds
8. Unexpected growth
9. Competition
10. Low sales

“These figures aren’t meant to scare you, but to prepare you for the rocky path ahead. It’s true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks. You will be your own boss. Hard work and long hours directly benefit you, rather than increasing profits for someone else. Earning and growth potential are far greater. A new venture is as exciting as it is risky. Running a business provides endless challenge and opportunities for learning.”

Having the support such as a contract team of professionals, such as seasoned “C” level (e.g. CFO, CEO, COO) consultants in the field of finance, marketing and sales professional, legal and tax adviser is key to pass the 5 year hurdle!  GMA is here to assist your company in developing and executing strategic plans and management;  Develop safeguards and plan for permanent reductions in sales volumes if needed and much more.   Be proactive!

 

To obtain a quote or is you would like one of our executives to contact you, please call 1-310-228-7721 or send us an email with your needs by clicking this link

Share