There are now 2.8 million small businesses on the Internet in the United States, according to Access Media International. Being in business for yourself brings with it not only rewards, but also inherent risks and pitfalls. During the earliest stages of development, it is particularly important to minimize the risks in order to maximize the rewards. Being the boss can offer great personal satisfaction, but with it comes the responsibility of making decisions and sticking with them. It is estimated that only 30 percent of all startup businesses in the United States are still in business after five years, according to the U.S. Small Business Administration.
Poor management is listed as the primary cause of business failure.
Year after year, a lack of managerial experience and aptitude has accounted for around 90 percent of all failures. Another reason for failure is that owners underestimate how much money it takes to start a new business. There are a couple of different options to consider when planning the financial startup of a small business. Borrowing money is one consideration, whether from an individual, a bank or the government. There are government money programs, as well as government small business loans.