3 Potential Reasons Why Your New Business Could Fail

The world of business ownership can be a world of uncertainty.  There is no guarantee that today’s million dollar idea will stick around, or if your new business venture will tank.  If you’ve been thinking about starting a business or company, the one thing holding you back is probably the uncertainty of success.  No business owner from Steve Jobs to Alex F. Bouri knew that their business was going to be successful, but there are a few clues we can use to tell you if your business is destined to fail.  

You don’t have enough money

We know that a successful business needs money to operate; after all there is the old saying that you need to spend money to make money.  It’s very common for new business owners to completely underestimate how much money they need to properly to operate their business. Because of this, business owners can also grossly over estimate how much they’ll be taking in when it comes to revenue and sales.  Therefore, it’s crucial for new businesses owners to have realistic monetary expectations for their business.  Talk to a financial advisor that can help you realistically pinpoint how much money you’ll need to launch your business. 

You went into business ownership with the wrong ideas

Did you want to start this business because you were sick of having to take orders from your own boss?  Did you want to make a lot of money?  All of these are good reasons in theory to start a business, but if you founded your business on these ideas alone you won’t be nearly as successful as you want to be. In order to start a business you’re going to need some professional knowledge of the business world, and be able to handle the physical, mental, and emotional pressures to start a successful business.  If you want to start a business so you won’t have to deal with another boss, think if this is really right for you professionally right now.

You plan things poorly

A few months into your business a personal tragedy happens, and you have to take a few weeks off f work.  Who will be running things while you’re away?  What if your first year isn’t nearly as profitable as you had hoped it would have been?  How do you account for the lack of funds?  Problems are a natural part of life, and you’ll need to plan ahead to stay afloat.  A lot of small businesses fail because owners don’t plan ahead, or don’t plan for emergencies or in case things don’t go exactly as planned.