The following is a guest post by Nick Rojas. Nick combines 20 years of experience working with and consulting for small to medium businesses and a passion for journalism to help readers grow.
While small businesses have a positively big impact on the U.S. economy, a lot of small business owners fall by the wayside because of fatal — yet entirely avoidable — mistakes.
Between the years 2006 and 2013, 60% of the jobs created were from small businesses while the remaining 40% were from larger companies. Even so, it’s important to know that for every business that succeeds over the long term, there are many others that crash and burn quickly.
One source, in fact, says that 80%, or 8 of 10, entrepreneurs who start up a company fail inside of the first year and a half. It’s likely that most of those entrepreneurs imagine building up successful companies that meet the needs of their customer bases. But only 20%, or 2 in 10, actually achieve success beyond the first 18 months.
Considering that these entrepreneurs are likely smart, intelligent, and driven, what accounts for the fact that so many of them fail to build companies that that survive and thrive? There are numerous reasons why most small businesses fail to last for all that long before folding in failure. But you can be reasonably certain that money woes are at the heart of more than one of these deadly mistakes that can make it hard for businesses to remain going concerns.
Whether it involves failing to secure enough financing to get started and to fund operations, the tendency to overspend on areas like marketing before taking the time to see what works, or trying to grow too big too soon, money problems can spell doom for many a business dream.
But it doesn’t have to be this way. Learning about deadly mistakes can help businesses to steer clear of problems that can start a dangerous death spiral of the crash-and-burn variety. Fortunately, small business owners can safely navigate difficult terrain and learn from the mistakes of other small business owners rather than have to go through these setbacks.
If you want to learn more about how to avoid the 7 deadly mistakes of small business, check out the following infographic that comes courtesy of Mulligan Funding.