Why small businesses fail....

         Michael Gerber is the founder of the Gerber Business Development Corporation and the author of E-Myth. He has compiled a list of 10 reasons why small businesses fail. if your dream is to start a business,  perhaps this will help you to drive your business towards success .


1. Lack of management systems. Many entrepreneurs have no systematic way of
getting and using information.

2. Lack of vision.

3. Lack of financial planning and review.

4. Over dependence on specific individuals or suppliers in the business.

5. Poor market segmentation or strategy. Many entrepreneurs don't know who
their customers are. Factors include age location, and why they buy.


6. Failure to establish or communicate company goals.

7. Lack of knowledge about their competition.


8. Inadequate capitalization. It is easy to start a business but often very
hard to stay in business.

9. Absence of standardized quality programs. 'How can we get better?' he is
a constant question.

10. Owners concentrate on the technical rather than the strategic work at
hand. It is easier to do a simple job than to think about the future.