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Why Do Small Businesses Fail and How to Beat the Odds

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Most businessmen are alarmed to hear that 80 percent of small businesses fail within the first five years of being started. So why does this happen?

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The main reason why small businesses fail is poor planning. This includes unplanned business administration, unplanned financial management, and unplanned marketing efforts.

Everyone who is thinking about starting a small business should make a detailed business plan at the very onset 全屋翻新. A business plan is your crucial planning tool and defence against business failure. While you work on it, you must also do the market research which is crucial to find out whether or not there is a market for your product.

The good news about why small businesses fail is that business failure because of poor planning can be completely avoided. You need to know what kinds of planning you should do before you start your small business. It is merely a matter of learning about what works and what doesn’t. So it pays to never stop learning.

In the words of Robert Kiyosaki, (famous American investor, businessman and self-help author) “It is not money that makes money, it is knowledge that makes money.” Without the right business knowledge you can put all your money into your business and yet never meet with success you are seeking.

Reasons Why Small Businesses Fail

Inadequate market research: Though you might really feel passionately about a particular product, you need to find out if there is really a market for the product or a service. Remember that the business is not about you, it’s about your potential customers and their needs.

Unplanned finances: You must sort out the money matters before you start your small business. You need to calculate how much money you need to carry out your daily living expenses and how much money is required to run your business. You cannot ignore the demands of your new venture, and nor can you ignore your bills. If you do not have enough money at hand to finance your business, you have to organize enough money to cover all your financial needs.

Inexperienced managers: One of the main reasons for failure is inexperienced managers who do not have the experience, knowledge, or vision to run a business.

Not choosing a favourable business model: How are you going to earn money out of your business? If you do not choose the right business model your small business is sure to be doomed. Too many people rushed into selling their product or service without even finding an answer to this essential question. There are many models to choose from like direct sales model, distribution business models, collective business models, franchise, multi-level marketing, etc. You need to make a careful choice about what suits your product or service best.

Not planning for growth: People work hard to create a small businesses and turning them into successful enterprises. However, they have no plan for what will happen to their business when they are no longer able to work so hard. They are ready to sell the business, but instead, it is more feasible to find a manager or a partner to share the business with.

The race toward modernization at any cost has resulted in a China that’s been blackened, fouled and poisoned. It’s the most polluted nation on earth and by far the world’s number one polluter (when all categories of pollution are combined), with 16 of the world’s 20 most polluted cities. Drinking water from virtually any lake, river or well in China may very well kill immediately, water from the tap brings a slower death, and on bad days the air is like toxic soup. A huge, continental sized poisonous haze several miles thick known as ‘Asia’s Brown Cloud’ perpetually drapes itself over China’s cities. The cloud’s consistency includes noxious atmospheric particulates that mix with the rain and are absorbed into the soil to enter the food chain, and it is permanently blocking a small but significant percentage of sunlight to all the nations of East and South-East Asia resulting in the reduction of arable farmland at an alarming rate, especially in China and India. Long-term health consequences from the effects of the brown cloud on humans will not be known until it’s too late, when it may come to be called the cloak of death. Since all sources of information and mass media are stringently controlled and all negativity that may reflect badly on government management is minimized, serious national problems such as pollution issues are only gently mentioned in passing, and always in the context of how the government is making great strides at solving them. Note: Moon shiners commonly counterfeit brand labels and sell for big savings to unethical small retailers, but it can be of poor quality and deadly, and is responsible for causing thousands of cases of partial to total blindness and severe liver and kidney damage in those who drink it every year. No Amazonian or African tribe has a better-attested tradition of cannibalism than China has. Even today human placenta is a delicacy and aborted human fetuses fetch astronomical prices (it’s said to work miracles for the skin). In a country with nearly two billion people to feed, an aversion toward squeamishness (rat fetuses are eaten raw at exclusive restaurants*), and no moral or religious qualms, fresh human corpses can easily and profitably represent over 100lbs. of weighted protein additive each, especially if they’re discreetly thrown in with the mix at small and very poorly regulated beef processing operations. For those who don’t believe-enjoy. (*Rat fetuses are freshly plucked and still alive when served-“Eat Three Squeals” is the name of the dish for those who see it on the menu and want to sample. Squeezing with chopsticks produces the first squeal, sauce dip evokes the second, chomp down for the third-enjoy again).

To be observed is how everyone has iron bars installed on their apartment windows, with double steel doors barricading the entrances that are each triple locked. Upon entering department stores all customers are usually required to leave purses, handbags, backpacks, attaché cases and sometimes bulky outer wear with attendants in an effort to reduce the horrendously high rate of shoplifting. In most Chinese cities, taxi drivers are isolated from passengers by being required to sit within built-in steel cages, since too many of them have been killed, and after dark it’s illegal for passengers to sit in the front seat. Surprisingly, the official, police reported homicide rate in China is now nearly twice that of the United States. All the more noteworthy is that this is in a country where gun ownership is strictly banned and possession can result in imposition of the death sentence! The appalling crimes of serial killers, mass murderers and sex criminals occur with increasingly shocking frequency now so that these aberrations are no longer a western phenomenon, and China may very well soon out-do the West in this regard. Child abduction is one of most common crimes and it’s much more serious here than anywhere else in the world. Every week in China thousands of children are kidnapped and sold, with some Chinese cities reporting well over one hundred cases per day (this is known and can be verified through information revealed by individual police precincts as a cautionary public service to residents, and not reported in the media). Some kidnapped children are sold into sexual slavery, some as slave workers to farmers or to underground sweatshops, and there’s gathering credibility to the rumor that some are sold for the harvesting of their internal organs. Producing babies for sale is a major cottage industry. As one entrepreneur explained, “It costs a lot to raise a pig until it’s six months old and I can only sell it for $5, but a human baby costs me very little since I can sell it at birth, and I’ll get $50”, (I’ve been offered children for sale on several occasions, once by a complete stranger while eating in a restaurant). While China’s cities are stressed, in the countryside deeper cracks can be glimpsed. In 2005 foreign observers witnessed and recorded over 75,000 major demonstrations by farmers protesting corruption, high taxes, set pricing on government crop purchases that are seen as confiscatory, and compliance with WTO mandated policies allowing foreign competition to enter China’s agricultural markets. Note: An hour’s walk in any of China’s cities will probably reveal an occurrence. Street fights start suddenly without any warning and they’re almost always between two or more women. The blood-curdling screams along with the slapping, kicking, biting, tearing, pulling of hair and gouging of eyes that spills from out of buildings or store fronts and on to the street would scare vicious, rabid dogs away. It was unnerving for me to first witness this-I got used to it.

For the Chinese today, nightly TV viewing is enjoyed watching ultra-nationalistic programming that elevates former and current leaders, and the Chinese Communist Party, to the level of God, and the best of Hollywood couldn’t improve on it for theatrical display. Popular music is oftentimes characterized by militaristic marching themes meant to arouse intense feelings of patriotism, or it can be religiously inspirational in singing of the deep love that the Chinese people feel for each other, and especially for the CCP. Only persons who can prove their ancestral Chinese lineage can be accepted as citizens of China. In Hong Kong, hundreds of thousands of people of Indian, non-Chinese Asian and middle-eastern descent who had resided there for generations were stripped of their citizenship after the handover to China from Britain in 1997. The Chinese pledge of allegiance that all students are required to recite daily, and all citizens weekly, is so nationalistically and racially partisan and intense as to be frightening! Note: Recently, museum curators in Beijing forcibly removed an exhibition surrounding the life and accomplishments of Albert Einstein from display after a mere 4 hours of opening. The intensive promotion of nationalism requires that people be made to feel that practically every invention or discovery of value in human history, every scientific achievement or medical advance of note, the most brilliant minds of history, every truly beautiful art form and all ultimate truth that exists, originated in China.

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