LOWE'S FINANCIAL

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Why small business fail part 6

Posted by Percy A Lowe on January 29, 2013 at 8:00 AM

Lack of Planning

Anyone who has ever been in charge of a successful major event knows that if it was not for their careful, methodical, strategic planning and hard work success would not have followed. The same could be said of most business successes. It is critical for all business to have a business plan. Many small businesses fail because of fundamental short comings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

Components may include:

 Description of the business, vision, goals, and keys to success

 Work force needs

 Financial: capital, equipment and supply cost and list, balance sheet, income statement and cash flow analysis, sales, benchmark, revenue, margin, staff productivity, best/worst case scenarios, and expense forecasting

 Marketing, advertising, and promotional activities

 Budgeting and managing company growth

 Advisory help

In addition, most bankers request a business plan if you are seeking to secure addition capital for your company. Be aware of alternative financing as well it is available somewhere in your state are other states. You will have to show both perssonal and business financials and banks want to know how well do you take care of your personal finances. Just as well as how well do you handle your business financials. You will face these steps for exsisting business and for start-ups you will be on a different type of report. So, have a business plan and strong data that supports your start up business idea. Have realistic short term and long term goals. Make sure you have a mentor to help guide you throughout your business life. Make sure you read all kinds of motivational and business building books. You can also listen to cd's and watch video's as well.

 

Categories: Small Business Managment

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