Thursday, March 14, 2013

Main Causes of Business Startup Failures

"I recently lost my job. I've decided to start my own business." That's actually a common statement. Sometimes people don't have any foundation upon which to build a business. They're just tired of working for other people. 

You need to read a lot of books and blogs and websites before you try to start a business. 

You have to take time to develop a real specialty, not just a passion. Too many business failures were strong in enthusiasm and weak on best practices and deep knowledge.

According to management experts, quality gurus, and turnaround specialists, most start-ups fail due to:

* lack of genuine expertise

* lack of good, innovative, customer-centered business concept

* failure to understand the market / industry

* bad bookkeeping and financial reporting

* hiring family members

* lack of competitor analysis

* managerial mediocrity

* focus on profit, instead of customer solutions

* poor customer service

* bad employee relations

* poorly planned advertising

* bad website design

* bad social media strategy

* not differentiating your business from competitors.

PHOTO at top of this post: ceiling lamp at the Lariat Steakhouse, Peoria, IL. 

They have delicious food and a very classy, cozy atmosphere. A good example of a successful business, the Kouri family has been operating many restaurants in the area for several decades now.

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