Small Business Challenges - overview

Within the small business sector there can be many challenges, and in order to overcome most of the challenges the business owner must prepare strategies to ensure successful growth. There are many challenges to owning a small business. Therefore, small business owners must plan for success and follow the plan in order to overcome these challenges. Lets examine the challenges that the small business owner faces: FIRST YEAR CHALLENGES * Knowing the Business Small business owners …

…first 5 years of establishment. Reasons for failure include lack of management, account keeping skills, cash flow, competition, or technological expertise. About 13% to 15% of all business enterprises disappear each year as well as 50% fail in the first three years, and after 10 years only 25% of businesses exist. The average life span of a small business is 7.25 years. Without planning and proper actions to execute these plans small businesses do not plan to fail, yet fail to plan.