According to the SBA, 50% of all businesses fail within their first 5 years. Survival the first year is not easy. There are many reasons why businesses fail. Below are the top five reasons:
- Poor planning
- Poor accounting controls
- Lack of accounting system
- Poor marketing (No website)
- Lack of funds
- Failing to set up adequate systems
- Hiring the wrong people
Small Business Openings & Closings in 2008:
- There were 627,200 new businesses, 595,600 business closures and 43,546 bankruptcies.
- Seven out of 10 new employer firms survive at least two years, and about half survive five years.
- Findings do not differ greatly across industry sectors.
According to a study by the U.S. Small Business Association, of all the new business startups:
- 1/3 eventually turn a profit,
- 1/3 break even,
- 1/3 never leave a negative earnings scenario.
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At Business Start Ups, we can help you with the process of starting your new business. We can help with setting up your accounting system, website design or incorporation .