There are signs. There are always signs. It's simply that all the signal flares were neglected by the one person with the most to lose: the Entrepreneur.
How can you avoid being in the undesirable majority of small businesses that fail? By being smart! Just because most companies can't go the distance doesn't condemn you to the same fate. You will vastly increase your chances of lasting success by being aware of the common pitfalls and playing Smart in avoiding them.
First of all, be realistic and honest about your financial needs. I can guarantee that there are more hidden costs than you have accounted for in your business plan. And let me just say that if you don't have a business plan, stop right here, go back and do one! Be smart and plan to succeed! I am equally certain that somewhere in your plan, you will have under-estimated expenses. It might seem like a minor issue but without correcting the error, your small oversight can turn into a dream killer! Oversight is the first step down the path to failure!
“A common fatal mistake for many failed businesses is having insufficient operating funds. Business owners underestimate how much money is needed and they are forced to close before they even have had a fair chance to succeed.”
Connor Mathews - www.small-business-credit.org
Once you've got a good, clear picture of your financial needs, truly explore 'all' of your funding opportunities. Please, for your sake, do not fund a business venture with personal credit cards. The fees will kill you! Before you borrow against all of your personal assets or pawn your grandmothers jewelry... be aware of the risk you're taking. Remember, we want to play Smart!
