Lets look at the three main reasons why businesses fail their first year.  Many people have a common situation but they fail to realize how much importance to place on these three particular concerns when they first start a business.  This should be on the top three of your priority list.  If you are able to meet these needs than providing the service or product that you do most likely will lead to a successful business.

  1. Lack of a central idea- This would include having a particular focus and building goals (they come around many times don’t they?).  Goal development and accomplishment is vital for a growing organization.  You want to make sure that you have a clear AND concise mission statement that fully develops and harnesses your goals.
  2. Not enough cash flow- you want to make sure that almost very LITTLE businesses will turn a profit in their first year.  In fact, the average is 3-5 years before any business will turn a legitimate profit.  You want to take that into consideration and even manage your finances to ensure that you are able to be stable through the first three year period.  In order to do so, you want to make sure your products is efficient and what you want to portray.  Its a good idea for multiple products to use the same resources and that way you are maximizing your profits.  You will end up all over the place if you don’t follow #1 through.
  3. Personnel Problems- Many small organizations can have a tough time developing both a clientele and employees.  Starting off with a complex employee plan is not necessary but knowing what you want to do is key.  Make sure that things are black and white and address concerns as they come up.  Each company is different and providing different regulations can ensure that you keep a statistic approach to development, training, and mentoring.