Business Financial Failures
I have been an Entrepreneur for 15 years off and on. I had a share of failures and successes. One of the greatest aspects that cause the failure of a business is the sustainability of yourself and the business. The others are insignificant starting capital and poor marketing strategy from my experience.
Expenses
Many business owners have neglected to keep the expenses less than revenue. The other habit was to try to spend until you make enough often we try to do this far too long where it does not sustain us emotionally and/or does not sustain personal finances.
I have learned running with bare minimum overhead, is best and doable. You don’t need to spend an extraordinary amount of money to make money. The more you spend of revenue will cuts into the net income. Ideally, if you can run with expenses around 10 to 30 percent. You will set yourself up for success.
Business Equity
Not many new business owners know what it is and how important it is. Business equity is money and Assets you have left after paying your financial liabilities including yourself. Starting with little equity can set the business up for failure as it would not have enough money to operate or acquire resources like labor or equipment. Without enough Laborers, you can’t grow or sustain the business for very long. As for equipment it affects the efficiency or quality of the services provided.
I do not know how many times I had to pay into the businesses because I started with little equity or no equity at all. Most of my businesses I started with no equity though it presented some serious challenges with promoting the business and getting it off the ground.
Revenue
Revenue is generated mostly by consumers so a healthy marketing strategy is a must for existing and new consumers. Without the consumers, your business will not sustain very long. Marketing is one area you do not want to skimp out on Marketing. I learned that one the hard way so I can generate revenue.
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