Small Business Success or Failure Small Businesses Lifetime

Small Business Success or Failure?

Small Businesses Lifetime Success Rates Success of Business Rates 1% 30% 39% Profitable Breakeven Lose Money unable to determin 30%

Major Cause for Failure Businesses reason of failure 11 1 46 30 Incompetence Lack of Exp Service & Goods Neglect/Fraud

Incompetence Specific Pitfalls: 46% * Emotional Pricing * Living too high for the business * Non payment of Taxes * No Knowledge of Pricing * Lack of Planning * No Knowledge of Finance * No Experience in record keeping

Lack of Managerial Experience Specific Pitfalls: 30% * Poor credit grant practises * Too Rapid in Expansion * Inadequate borrowing practises

Lack of Experience in Goods & Service Specific Pitfalls: 11% * Carry inadequate inventory * No knowledge of suppliers * Wasted advertising budget

Leading Managerial Mistakes Specific Pitfalls: 1 Going into business for the wrong reasons 2 Advice from family and friends 3 Being in the wrong place at the wrong time 4 Entrepreneur gets worn out/underestimates time 5 Family pressures 6 Pride 7 Lack of market awareness 8 Entrepreneur falls in love with product 9 Lack of clear focus 10 Lack of financial responsibility & awareness

How Can I Help? Bookkeeping Services: 1 Experience in Record Keeping - Know compliance regulations 2 Knowledge of Finance 3 Keep track of ‘high living’ expenses 4 Inventory prices/stock tracking 5 Track cash flow and determine credit grant for business