- Management mistakes: poor management cause business failure – lack of leadership ability, sound judgment & knowledge to make buss work
- Lack of experience: small business managers need to have experience in the field that they want to enter.
- Poor financial control: requires proper financial control. Need to implement proper cash management techniques. Maintaining adequate cash flow is very crucial
- Weak marketing efforts:to build a strong base of customers requires a sustained, creative marketing effort. Keeping them coming back requires providing them with value, quality, convenience, service and fun.
- Failure to develop a strategic plan: many small business neglect the process of strategic planning – feel will only benefit large companies
- Uncontrolled growth: Expansion requires major changes in org structure, buss practices such as inventory & financial procedures, personnel assignments. As buss increase in size & complexity, problems increase & has to deal with it.
- Poor location: Often business location selected with proper investigation.
- Improper inventory control: insufficient inventory level result in shortages & stock outs – causing customer leave
- Incorrect pricing. Establishing prices that will generate the necessary profits means that business owner must understand how much it costs to make, market and deliver their products and services.
- Inability to make the "Entrepreneurial Transitions". After the start-up, growth usually requires a radically different style of management, one that entrepreneurs are not necessarily good at.
Hope that with this entry, you are more aware of mistakes that you must avoid. Good Luck.
