Here’s an interesting experiment. If you search terms like “small business bankruptcy,” or “cause of small business bankruptcy,” one word comes up frequently. That word is “lacking.” It would appear that the reasons small businesses fail are not about where they excel or what they offer, but where they are lacking. Here are some examples of what you will find when seeking out reasons why small businesses commonly fail. It just may help you determine if and where your small business is lacking.
They are Lacking Funding
Call it funding, financing, or cash flow, but one of the biggest reasons small businesses declare bankruptcy is due to the lack of financial resources. They simply don’t have enough money to get on their feet and up and running. With more solid financing, many small businesses could ride the wave to success.
Lack of Management Experience
Many small businesses are started by entrepreneurs who have a great concept or idea. Sadly, they can lack the management experience and business acumen to propel the business to success. Even small businesses need strong, experienced management to help them succeed.
Lack of a Marketing Plan and/or Marketing Experience
A product or service that is invisible has little chance to succeed. A solid marketing plan with experienced marketers can help move a business out of the shadows. A lack of marketing expertise is difficult to overcome.
Lack of a Solid Business Plan
A business plan that is well-developed and crafted can be a roadmap to success. A lack of a business plan can be a path to failure. This can be as true for a small business as it is for larger ones.
Small businesses are under attack from competitors, their lack of experience, and outside elements like theft, weather, and natural disasters. Business insurance can help. Contact us for a no-obligation quote and business insurance review. Make sure your coverage is not lacking when it comes to business insurance. Contact us today. Our business insurance agents are here to help you protect your company.