Why do small businesses fail?Why do small businesses fail?

Inexperienced ManagementLack of Vision and Business Knowledge

Poor Planning

Market Research. • Find out if there's any genuine market for

their product and/or services• People start businesses because they want to

do a particular thing or love a particular product….it's not about you, it's about them - your potential customers.

• Make a business plan - you'll do the market research you need to do and find out whether or not there is a market for your product.

Things to eat in Walden

Money

• Before starting a small business, you need to figure out how much money you need to live

• How much money is needed to run your business.

• You can't ignore the money and just assume that somehow enough of it will come in each month. Nor can you ignore your bills.

Is There a Demand for It?• This is the part

that's about you and you have to get it right or your small business is doomed.

• Too many people leap into selling their product or service without even considering the answer to this basic question.

Plan for Growth

• Plan for success. • What happens if you don’t want

the business anymore?• Sell the Business?• Hunt for a buyer – put plans on

hold – train others – find someone with skills/interests that match business

• Create a transition plan – bring in new partner so you can move forward rather than waiting around

Exit Strategy• If you want to sell a business, it has to

be saleable. • Many small businesses aren't because

they're dependent on one person's talents and personality.

• Others might be if a person gets their business into selling shape.

• But is selling in the open market the best possible exit strategy for you?

• The best time to choose an exit strategy is when you're starting a business, not when you want to get rid of it.