Why Small Businesses Fail

Small businesses have a 50% chance at failing.  It’s a harsh statistic but it’s true.  So you are probably sitting there thinking. How can I prevent my business from failing?  Easy.  Careful planning.  I put together a short list of why businesses fail.  Read this list carefully and learn from it.  

Inadequate Capital
Not having enough capital is a critical mistake.  Business owners who undervalue the amount of capital they need are forced closed before they even get the chance to succeed.

Starting for the Wrong Reasons
Numerous people start a business for all the wrong reasons.  The prime reason entrepreneurs start a business is to make lots of money.  What they do not consider is the time and energy it takes takes to launch a business.  

Before you open a business.  Ask yourself several questions.  How much time, family time I’m willing to sacrifice?  How much money do I want to sacrifice? Do I have a passion for what I’ll be doing?  Once you can honestly answer these questions.  You will have a better chance at entrepreneurial success.

Lack of Planning
It is imperative for all businesses to have a business plan.  Your plan must be precise, realistic and must have up-to-date projections  Many small businesses are unsuccessful because of insufficient training.  Your plan must be well thought out, strategic and realistic.  

Contact www.divinitymarketing.webs.com for business plans.

Marketing
No marketing. No business.  Customers are not going to walk into your door. You must promote your business.  If you do not market your business, your soon-to-be customers will not know that you exist.  Any type of marketing such as social media, handing out flyer's and business cards to networking will do.  

Poor Management
New business owners lack the business and management experience they need in finances, selling, production, hiring and managing employees.  You must have some management experience in order to succeed.  Without a successful leader your business will fail.  A successful leader creates a positive work environment.  They encourage productivity, they are skilled at hiring an training employees.  A good leader can delegate.  

Location
One key reason to consider when deciding on a location is competition. Many small businesses do not take the time to look around to see what kinds of businesses are around them.  Too many businesses are only interested in a cheap monthly payment.

Tax Checklist

So it’s Tax season.  Some love it some hate it.  For business owners, Tax season can be a major headache.  But if you are were organized for the entire year.  Then all you have to do is pick up your tax file and send them right over to your accountant or preparer.  

Divinity compiled a tax checklist.  To help you be better prepared for the following years.  Of course, you can use the checklist to help you prepare for this year.  

Organize you Receipts
It’s simple!  Start organizing all of your receipts right away.  Especially if you have a kept all of your receipts in a big box, drawer or in your wallet.  Try to place receipts in a file folder according to the date.  That way they will already be organized come the following year. There is excellent accounting software out there to help you get organize.  http://quickbooks.intuit.com/

Establish a 2010 file & 2011 File
Keep all tax documents from 2010 separate for 2011.  Again, organization is highly important.  Create a file on your computer and in your file cabinet label one 2010 and the other 2011.  Remember, it’s all about simplicity.  

Get Your Books in Order
Sit down with your accountant and check over your balance sheet and profit and loss statement. Make sure you verify accuracy and correct any errors.  This is also a good time to figure out ways to cut back on expenses and plan for the following year.

Did you write down your Mileage?
Please remember if you are using your personal vehicle for business you must track the mileage.  IRS requires that you track your mileage from January 1- December 31.

Plan for 2011
There are a lot of tax laws that will be changing this year.  Please visit www.irs.gov for the updates.  The tax changes will affect your business and how you file for the next year.  


If you anymore questions and concerns contact us www.divinitymarketing.webs.com.  We will be happy to help.  

Plan. Launch. Succeed.

Entrepreneurs New Years Resolutions

The New Year is here!  Let's start it out one a good note. Divinity put together a list on how you can prepare your business for 2011.  

Get your Tax Documents in Order

Gather documents for tax season preparation.  Be sure to gather all documents, forms, invoices, and receipts from the previous tax season.  Present tax documents to your tax accountant or preparer.  Don’t forget receipts for any charitable donations or business receipts.  They could count towards donations. 

Tie Up Loose Ends

Do you still have projects lingering from 2010?  Set up a To-Do-List and quickly knock those projects off your list.

Prioritize

In order to create better business foundation ask yourself, what can I do to make this year a better year?

Update your Business Plan

Look over and update your business plan. Make sure all graphs, goals, strategies, etc are updated.

Expenses

Carefully look over your expenses.  Look over areas where you can cut back. Cutting back can save you lots of money at the end of the year.

Marketing

Step out of your comfort zone.  Choose the best marketing techniques for reaching your target audience.  Please do your research and know how to reach your audience.  Make marketing a priority this year.  Remember network with everyone you know.  Word-of-mouth marketing is very powerful.

Planning

PLAN. PLAN. PLAN.  Careful planning and strategy is the key to a successful year and a bigger bottom line.

www.divinitymarketing.webs.com