News Service One Small Business Administration study indicates that more than 60 percent of all new businesses fail within the first six years of operation. Dun and Bradstreet estimates that 82 percent will go under by their 10th anniversary. Another study has more than 300 companies failing each week. Failure to understand the market for your business' product or service has spelled the death knell for many new companies. In other words, they simply won't do enough marketing before opening the doors.
Inadequate capitalization is another key area.
Be realistic in your expectations. Being financially realistic means that you may need to wait a while before launching your new venture. And it certainly includes putting together a budget and following it religiously. Many small businesses fall to thrive for the simple reason that their owners just don't know how to run a business. The category of management skills runs from tax savvy to time management, from record keeping to financial projections.