11 Reasons Why Small Businesses Fail

Avoid failure: seek out fresh perspective and experienced navigational support to help your business GROW.

I read an article that resonated with me: 11 Reasons Why Small Businesses Fail. Here’s a summary with my observations:

  1. Empty Pockets– #1 reason small businesses fail.  They may have GREAT products and people but cash flow is a problem and they fail to fix the problem quickly enough; they think it will go away, simply if they “give it time”.
  2. Overconfidence– Failing to get outside perspective, confirmation, or challenge
  3. Poor pricing strategy– I recently read McKinsey & Co research concluding that “80-90% of all pricing mistakes come from companies pricing too low”.  So true!
  4. Dueling partners – Too much conflict can destroy company morale (and cause confusion)
  5. Burnout– I read a study that the #1 concern of small biz owners is not enough time, followed closely by “having to do too much myself”.  Extra hands can relieve the burden.
  6. Stale marketing message – How often do you companies fail to listen to customers and potential customers to see what THEY think of them (and their competitors)?
  7. Failure to join the digital revolution– I would add: “being clueless about WHICH digital approach to take”
  8. Cybertheft
  9. Underestimating the competition…or failing to study their vulnerabilities, to identify how to win against challenging foes
  10. Overreliance on one customer– I have seen this many times; often for convenience, comfort, or fear
  11. Disgruntled employees– One study showed 70% of workers are NOT engaged at work, or are actively disengaged to the point of undermining co-workers.  This is sad, but true.

Carter Welch helps clients navigate their path to growth…and avoid the pitfalls and roadblocks that can cause companies to fail.