Most small businesses fail because of mismanagement. According to Statistics Canada, ("Failing Concerns: Business Bankruptcy in Canada", November, 1997), most businesses fail because of weak general management, weak financial management, or weak marketing capabilities.
23 percent of Canadian small businesses fail in their first year and 22 percent fail in their second year, which means that 45 percent of the small businesses started in this country don't survive more than two years.
How do you avoid business failure when you starting a small business? Preparation and planning are key.
This article is all about the first step in preparing to start your own business, exploring your attitudes and abilities to determine whether or not you want to start your own business. From here, if you've decided that starting a small business is right for you, the next step of preparation is to decide what kind of business you want to start, and begin working on your business plan. You'll find information on how to write a business plan and samples of business plans that you can use as models in my Business Plans library.
When you're wondering if you're suited to start your own business, quizzes are fun, but it’s important to remember that getting a low score on any of these “tests” doesn’t mean that you’re not cut out to be an entrepreneur and that you should forget all about ever starting a small business. Research leads to many generalizations that are not true in the individual case - and you may be the exception.
What do you really want to do and why do you want to do it? “Do what you love” is still sound advice; having a passion for what you do will fuel your commitment and give you the energy you need for the long haul. Thinking of starting a small business? What is your “burning desire” and how can you shape it into a reality that will provide you with both satisfaction and a profit? That’s really the only question you have to answer to start your own business.
