Why So Many Businesses
Having been a small business owner and consultant for twenty-plus years, I had the opportunity to learn from my own mistakes, as well as, seeing the business failings of others. I have learned that there are definitely reasons why a small business fails; why some are successful; and why certain types of people are more successful business owners and entrepreneurs. The good news is most successful small business owners had many failings before achieving a level of success, and the object of this article is to identify their (and my) mistakes. Lack of Capital When starting a business, an entrepreneur needs to first bring sufficient cash to the venture. I recommend a minimum 10% of the total funding amount to come from Owner's Equity, with 20% being optimum. Having a strong equity stake in the beginning of a Company's life makes acquiring the additional capital much easier and less expensive. Strong Owner's Equity shouldn't stop after a Company's start up stage. A C...