Why Do Nearly 90% of New Small Businesses Fail?

Everyone has dreamed about starting a business and being their own boss. Most who pursue that dream find only frustration and failure.

Everyone has dreamed about starting a business and being their own boss. Most who pursue that dream find only frustration and failure.
Since 1986, as many as nine out of ten new businesses have closed in their first year. According to a recent survey of failed business owners, “lack of planning” was the number one reason listed for new business failure. Other reasons included were: lack of experience, money, and low sales.



It may be that most people just get tired of feeling used and unappreciated at their jobs. They get their inspiration for entrepreneurship out of frustration. They see a company that they feel could be operated better, and they make the decision to go out and try it themselves. They are sometimes shocked at the overwhelming task of operating and growing a successful business. From lack of planning, and out of total frustration, they close their business and return to their employee status.

It’s really a shame; there are numerous talented people out there who could possibly build a better company. But their lack of planning from the start closes the door on their odds of success, sometimes before they even open the doors of their new business.

One of the most important calculations when planning a new business, which most new entrepreneurs grossly underestimate, is their personal cost of living. They list all the expenses their new business will have, but they neglect to recognize the total of their everyday personal expenses. The household bills still show up in the mail box, even though the chance of showing a profit in new business might take up to three years.

The number one reason people listed for wanting to be self-employed was, “I want to work my own hours.” The time needed to get a new business up and running is a main planning issue also underestimated. New business owners most often need to invest many more hours than they did while working for someone else. Most new entrepreneurs quickly come to realize they have committed to more than the normal forty-hour work schedule. Business owners work an average of sixty hours a week.

Studies show that businesses who do survive longer had more cash up front to invest. Other survival factors included higher education and ten years or more previous experience in their field. Age is also a factor for success. According to a 2002 United States Census Bureau report, most successful business owners are over the age of thirty-five.

If you are considering starting up a business of your own, do the proper planning. Research the industry you’re interested in, and see where the closest competition is. Get yourself educated about your new business. Avoid taking large loans to fund your new venture. Instead, keep your business idea in proportion to the amount of money you have to invest. There’s always a way to work out your idea without exceeding your means.

With as many as nine out of ten new businesses closing in their first year, knowing the reasons for those statistics is crucial to starting a successful business. Being self-employed can be gratifying and rewarding. With the right planning, success is achievable.

Carol Denbow

How to write essays

Strategize, strategize and strategize. This is the key to success and stable continuity. We would teach you how to write essay so that you do not fall out of place when given to handle one.


Strategize, strategize and strategize. This is the key to success and stable continuity. We would teach you how to write essay so that you do not fall out of place when given to handle one.

The foremost thing is to plan the entire flow. This step is very important and provides a full fledged plan of procedure. It marks the information flow path and decides the breakdown of the essay so that it establishes enough cohesion among the modules and final amalgamation of the conclusion.

Sources need to be researched well so that it creates an impression of in-depth research for the topic and referenced too to avoid plagiarism. Searching for sources acts as key in writing a good essay.

Breaking the essay into modules and further into sub modules would depict the art of professionalism. The merge and sort process of handling an essay would further enhance the feature of comprehensively exploring the topic to get a clear picture of pros and cons of the essay.

Providing a rich content in the body section is essential for the success of the essay and also puts stress on the beauty of writing and proper usage of words. Sentence construction is quite vital for efficiently handling the essay.

Linking the various modules and sub modules is very important, things are often logical and such approach is quite seen in practice where linking is the last differentiator between essays. The flow must be well tracked and is responsible for making a great essay.

Providing charts and diagrams with explanations included into the essay act as support for running text and is a fine tool for greater understanding of analysis. The reader gets to feel that the writer has good grip on the topic and knows how to promote it.

Case studies as examples can be provided so that the reader gets to feel the proper context of usage of the essay and its real implication to the changing variables in the atmosphere it functions. It clearly mentions how a particular strategy has worked out for a being or enterprise so that their process can be considered for further process improvement.

Writing style is very important in the entire process and marks its quality.

The following are the points which must be taken care for writing an essay:
1. It must always accompany an abstract, which speaks in short about the entire essay
2. Introduction is very important, it marks the beginning of the essay
3. Statement and word count must be mentioned,
4. Contents page is very crucial to any essay and marks the modular breakdown and definitely the flow of the essay,
5. Body of the essay
6. References list which includes the list of sources consulted and used in the essay
7. Appendix, it may include diagrams, charts and other relevant illustrations which need to be referenced well.

The key to successfully writing of an essay demands the above discussed points and adherence to them can result in great essays that can fetch academic excellence and achieve success in the concerned field.

Gabriel Rise