Small Business Success or Failure

Replies to This Discussion

Permalink Reply by Alvin L. Abston I on August 30, 2008 at 9:21pm

I think the reason that small businesses fail is mainly because even though they are small they rely on big business co-operation. I am a sub contractor..even though I own my business I depend on larger companies to "Sub" out work that they will not invest a lot of time or man power in. and you might ask why don't I get my own contracts? Well corporate America isn't going to trust a million dollar account in the hands or on the word of a single guy who they don't know. For example..Nike corp ships millions of dollars worth of merchandise all across America each day. There is no way that I a singe truck company can go in the board room and convince the stock holders that their product will be safe and on time with me hauling it instead of lets say..Yellow Freight Lines. Yet Yellow will sign that contract.. turn around and sub lease it to me and others like me get all the credit for the "great job" not spend a cent in fuel, and cash that big check that Nike has agreed to pay them. All they are out of is the initial insurance payment [cargo insurance] which they now drop because you have to have it to operate your truck so they hold you responsible for the full value of the load. We spend our lives living in the shadow of "large corporations" and take so many pay cuts until we can no longer afford to stay in the game. This is my view..I'm out

Permalink Reply by Gaye Bell-Campbell on October 28, 2008 at 5:44pm

Those large corporations had to start somewhere. Be encouraged, you may be the next large corporation. Luke 19:13, says, Now, do business (or occupy) til I come." Be blessed.

Permalink Reply by Alvin L. Abston I on January 3, 2009 at 3:39am

thank you for your words of encouragement,,,it was what i needed at the time...be blessed

Permalink Reply by Christopher V. Shade on August 30, 2008 at 11:50pm

Here are some common mistakes that can sink a business in no time. 1. Taking on too much debt. Learn to pay strict attention to your finances and keep careful records of all money coming in and going out. If you're just starting out in business, seek out seasoned veterans you can bounce your ideas off of prior to making big financial commitments. 2. Failing to prepare for volatile markets and uncontrollable costs like energy-rate increases, materials, labor, natural disasters, and such. The only constant in business is change. The ability to recognize opportunities and be flexible enough to adapt to changing times is a key ingredient to surviving and even prospering in the toughest business climate. Therefore, learn how to wear multiple hats and to generate new interests and areas of expertise. 3. Poor customer service. Consumer loyalty doesn't just happen; you have to earn it. If you don't take care of your customers, your competition will. 4. Bad business location.Key factors to consider include competition (how many other similar businesses are located nearby?) and accessibility (is the area well served by freeways, public transportation, and foot traffic?). 5. Ineffective marketing and self-promotion.Learn how to cost-effectively advertise and promote your business through such tried-and-true methods as direct mail, ads in local newspapers, Web sites, blogs, even by sponsoring a local little league team. The number of advertising and promotional ideas that exist is only limited by your own creativity. Go forward and prosper...God Bless.

Permalink Reply by Angela D. Green on September 2, 2008 at 9:32pm

I think one of the main reasons is poor financial planning. Within the first three years you have to plan to take care of your business instead of looking for your business to take care of you. Of course there are those times where businesses are an instant success. However, in most cases, growing the business is a process. Almost all profits need to be fed back into the business to keep it going and increase the client base to the point where the owner can start paying themselves.

My thoughts on the current economy? Well, I know with the Wisdom of God there are people making money and developing new revenue generating opportunites every day. In fact, there are people who make their most money during this type of economic climate. The question is, "Are you going to be one of them?" The source of my wisdom and guidance is Jesus Christ. Therefore, I do not have to worry about the current economy. He gives you the plans and strategies to weather the storms and come out on top.

Permalink Reply by Gaye Bell-Campbell on October 28, 2008 at 5:28pm

I feel that the basis for small businesses failing in the first three years are: 1) not allotting enough operating capital to begin with, 2) not using wise marketing strategies, 3) and not having a plan B and C, just to name a few. Most small business that operate as a sole proprietorship don't allocate the necessary funds for operating capital for 1 to 3 years. This should also include salaries. You can't do it all by yourself, which we tend to think we can. Sometimes we spend too much out in the beginning on marketing for the business that doesn't generate income. We have to be wise in our selection of marketing techniques. Simple and economically savvy ways of marketing, such as, networking through events, word of mouths, referrals, free local publications, church, are just some of the inexpensive ways to market your business and most of the time will generate more publicity than costly newspaper ads. Also, we are not consistent with marketing--we become complacent. We also don't have a backup plan during difficult economic times, or due to lack of employees. A lot of times small businesses may have started out on the wrong foot in their start-up plans. Loans aren't always the best way. If you go it alone, then when times get rough, you're on a limb by yourself. I believe the economy could be ripe for new opportunities. You have to think smarter than the consumer.