Fatal Pitfalls Of Running Your Own Business
- Choosing an incompatible business
- Unrealistic expectations
- Using a Business Plan not tailored to you
- Using inaccurate sales forecasts
- Locating on the wrong side of the street
- Lease arrangements that can rob you
- Shortsighted financial arrangements
- Choosing the wrong organizational structure
- Missing your target market
- Designing a layout that discourages buying
- Buying costly and ineffective advertising
- Using inappropriate selling techniques
- Setting prices that hold down profits
- Inconsistent management
- Living off cash flow, not profits
- Letting your accountant run your business
- Ineffective inventory planning
- Chaotic management
- Expanding for the wrong reasons
- Believing that you will work forever
Source: Why Entrepreneurs Fail, James W. Halloran, Liberty Hall Press, 1991
- Business Start-up Quiz
- Take this quiz to see if you are up to starting and running your own business. These questions will start you thinking about what is involved to owning a business.
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- Can you handle not knowing where your next paycheck will come from or when?
- Do you have the cash reserves or source to pay your personal bills for the next 2 years without taking any salary from your business?
- How much are you willing to risk?
- Click here to take the full quiz.
- Top Reasons Why Businesses Fail
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- Poor cash flow management skills
- Starting out with too little money 79%
- Lack of a well-developed business plan
- Click here to read the full list and to learn more.