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Why /Businesses Fail?

Businesses fail for a great variety of reasons, but some reasons are more common than others. Columnist Doug Hood, in the September 2000 issue of INC. Magazine, provided what he finds to be the ten most common reasons that businesses fail. They are: 1. Lack of planning 2. Lack of experience 3. Insufficient capital 4. Wrong location 5. Heavy competition 6. Uncontrolled growth 7. Seasonal business 8. Tax issues 9. Fraud 10. Management turnover While there can be a number of causes and root problems for each of these issues, I think it really boils down to the number one reason on the list: LACK OF PLANNING. A business with a good business plan, marketing plan, sales plan, etc. is going to have thought about how to prevent (or at least reduce the risk of) the other 9 items on this list. Review this list again and ask yourself, "How prepared is my business to deal with these potential problems?" If the answer is YES, then take some time to review those plans to ensure they're still valid. If the answer is NO, spend some time TODAY to address those issues. About the author: Jim Allen is a professional life & business coach. For more ideas, subscribe to his free bi-weekly ezine, THE BIG IDEA, by sending a blank email to: SubscribeGA@CoachJim.com

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