Why Do Small Businesses Fail?

As the president of your company, it’s up to you to make the necessary decisions so your company survives. Yet as an entrepreneur, it’s inevitable that you will eventually hit an obstacle you have no idea how to overcome. Sometimes we think we should have all the answers and that asking for help is a sign that we are weak.

The truth is that there is no shame in asking for help. The most successful people don’t go it alone. They find people to mentor them, colleagues to bounce ideas off of, and others to help them complete tasks they can’t do themselves – or might not have time to do themselves.

Dunn and Bradstreet recently did a study and determined that “90 percent of small businesses that fail do so because of a lack of skills and knowledge on the part of the owner.” In another study, they found that 90 percent of small businesses were still in business after five years IF they had got help from a Small Business Development Center or other expert assistance.

U.S. Bank/SCORE also found that “In 70 percent of small business failures, a key factor was the owner not recognizing or ignoring weaknesses, and then not seeking help.”

You may not know what exactly the next step is. Don’t be afraid to ask others for help. Don’t be afraid of research. Read books. Talk to your peers, coworkers, broker, or others you know. Go to conferences. Many others have been in your shoes. Seek out guidance when you need it.

Organizations like your local Small Business Development Center or SCORE branch will provide you with free or reduced cost business counseling. Your local Chamber of Commerce is also a great resource to learn more about the ins and outs of running a successful business.

For help with basic office management, such as administrative support, graphics or web design, sales and marketing, financial management or basic legal work, check out Elance.com. It’s incredibly easy to post a project – just sign up, post your job requirements and wait for people to start bidding.

Seek help if you need it.

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