1. Lack of Resources and Capital:
Way too often small businesses fail before they have a starting chance due to of lack of resources. Before starting a business, you should always create a budget. This should be included in your business plan. Not everyone will have enough money in their savings to support their business start-up; however, you may try to obtain a business loan with your local bank or credit union. The Small Business Administration also offers small business loans with low interest rates + prime (www.sba.gov).
2. Lack of Knowledge:
Just because you think a certain industry is glamorous doesn’t mean you have what it takes to be successful in that industry. I think being an actress is way past “glam” but I know I don’t have the knowledge, nor the skill set to make it in that type of industry. You don’t have to have an education, but you do have to be educated about your industry. Do your research by reading related books, taking a couple of classes, or getting a mentor that’s already doing what you desire to do. You will go a lot further in your business if you have the required knowledge.
3. Trying to do everything yourself:
So many times small business owners wear too many hats. If you are business owner, you can not also be the Marketing Specialist, Payroll Specialist, Human Resource Manager, Secretary, and the list goes on. You must make sure that when you are creating your job descriptions you are not the person fulfilling all of them. Find qualified individuals to work in the positions needed and you do what you know how to do. You don’t want to be a “Jack of All Trades and Master of None.” Find that one thing at which you are “GREAT” and stick with it. And let everyone else be great at what they do!
4. Improper Structure
If you don’t know how to set up your business, find a professional who does. Seek out proper council before setting up your business to make sure that it is done properly. Make sure that you speak with a business or tax attorney and CPA to assist in deciding which business structure would be the best fit for you.
There are so many resources out there to assist with start-up businesses. Community colleges are a great place to start, as they usually have small business centers that offer “FREE” resources and seminars. The Small Business Administration (www.sba.gov) is also a great place to go for assistance with business start-ups. I’ve also found that SCORE (www.score.org) is very helpful. SCORE is a non-profit organization that offers mentorship opportunities to business owners. You are paired up with someone within the same industry to assist with your needs. These are usually people who are retired and have chosen to become advisors to assist small business owners. There is no reason that we all can’t be successful.