“Most Frequent Cause of Small Business Failure”

What is the most frequent cause of small business failure?  Is it lack of sufficient capital?  Inability to market and sell their service or product?  Inability to produce a quality product or service at a competitive price?  Or, simply a lack of management skills?

In the past most business consultants seemed to feel it was the lack of management skills, which would take into consideration an understanding of all of the above items and the capability of finding solutions to each.  But in talking to today’s business consultants the real culprit is most often EGO.  Ego and the manifestation of ill-advised pride results in a business owner being unwilling to ask for or accept helping in gathering the information or resources they need to solve management problems. 

It is a shame when you see a business go under that you knew could have survived if the owner would have only taken advantage of the help or guidance that is available. Some of these sources are free and some are professional business turnaround companies.

The SBA created and partially funded the SCORE group (an independent nonprofit corporation dedicated to Counseling America’s Small Businesses), and the SBDC (Small Business Development Center) which are free sources of business advisement that are available to all businesses.  There are Chamber of Commerce sources as well as online internet sites which an owner could use to find solutions to problems.  The point is there is no reason to struggle through attempting to make it in business without help.  If you do, shame on you for being so proud and letting your false pride keep you from success.

If you are a small business and you are barely making it, swallow your pride and ask for assistance in analyzing your business and the options and alternatives available to turn things around.

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