3 Reasons Your Small Business Startup Isn’t Going Well

You had it all figured out, but along the way of setting your small business up, something went terribly wrong and now you are here readying the 3 reasons why your small business startup isn’t going well.

Well as an entrepreneur you’ve taken the right first step and tried to see why this is happening, instead of just giving up right away.

There could be many reasons as to why a startup just doesn’t perform, but the big 3 reasons include:

1. The Lack of Planning
2. The Lack of Knowledge and/or Experience
3. The Lack of Funding

Most likely whatever the reason is you are experiencing will fit into one or all of these 3 reasons for your startup’s demise.

So lets take a look at each one a little bit more…

The Lack of Planning

One of the first steps to any business startup is to ensure that you plan it out. And I mean plan it out well. That’s why a professional business plan is your best friend when it comes to planing your small business startup. Skipping over some of the planning steps will hurt you in the long run.

We always say that a business plan should be your first step, as it acts not only as a guide for your business but it is also a manual if something is to go wrong. A well developed business plan will ensure that you are prepared for any of these 3 reasons, be it lack of funding, experience and knowledge and obviously the planning.

The Lack of Knowledge and/or Experience

Nothing can really prepare you in business if you don’t have the knowledge or experience but time and more time. But do you really want to be using up all this time “learning” how to run and startup, or do you want to use it to run your business and make money? 

Lack of experience and knowledge is a definite factor when  business startups fail. One way to avoid, is to research, research and research some more, or partner up with somebody who has the knowledge/experience you lack.

The Lack of Funding

And back to the money. For some reason when we talk about startups, we always come back to the topic of money/funding. Why? Because money is needed to succeed. 

There are many ways to succeed without funding, but im sure it takes much longer and much more work is involved. But…as a startup that needs to get off the ground and break some barriers to make money, you need funding.

And most startups fail due to a lack of money, or inexperience of using the money that they have.

So your next step to ensure you avoid “the lack of funding” problem, is to look for funding before you start your business – or at least in the early stage.

Remember, if you do your business plan, and have access to a funding database such as the one offered by CanadaStartups, you can be prepared and avoid this reason for failure.

So now you know the 3 of the main reasons why startups don’t always succeed, and the factors that play the major role. And now you can learn from the mistakes thousands before you made, and utilize a business plan, search for funding and be knowledgeable before you get into this mess.