Sidestepping five critical dangers can avoid the failure of a small business, according to research compiled by AdviCoach, a provider of consulting services to small and midsized businesses.
"Our research has identified the challenges or problem areas that all business owners are most likely to face," said AdviCoach president and COO Brian Miller. "Business owners need proactive partners to help them implement through rapid impact strategies which will improve business performance and revenue."
AdviCoach research found that SMB's are weak in one or more of the following areas:
1. Financial Management: Cash flow restrictions—even seemingly minor bottlenecks—are responsible for over 70 percent of business failure with their first year.
2. Human Capital: The mismanagement of human capital is the main reason that good companies never become great. These issues are actually amplified in situations with high unemployment.
3. Planning: The majority of companies pursue projects that are incompatible or inappropriate for their resources and capabilities.
4. Sales and Sales Management: Under-performing sales people bring in at minimum 50 percent less revenue than top performers. Many companies do not have defined sales processes in place.
5. Communications Leadership: The beginning and end of all failure in business lies with the people who make everyday decisions.
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