As a result, the short-term bank loans don't get paid off. Unfortunately, if you don't find some customers who agree, the business is doomed to fail. If you are in the beginning stages of starting a business, test the waters before diving in. First, talk with prospective customers about your ideas to see if there will be viable buyers. Second, talk with others in your industry.
Many competitors are quite willing to share information with each other.
If you can't find someone locally who is selling a similar product, you should have no problem finding someone from another part of the country who is. Third, attend a trade show or two before you get serious about your business. This will assist you greatly in learning more about what sells and what doesn't. In my 16 years in banking, I have seen nearly as many new businesses fail because of too much sales as I have due to not enough business. As mentioned previously, many small businesses are under-capitalized.