Merchant Cash Advance Shows Hot To Avoid Becoming a Small Business Failure Statistic
There were about 146,000 business startups a year, and an average of 12,000 business bankruptcies per year from 1994 to 2004 in Canada. A 2004 Statistics Canada study on small business merchant cash advance failure rates "Key Small Business Statistics – January 2005: How Long Do Small Businesses Survive?" found that the first few years were critical. While almost three quarters of merchant cash advance small business startups survive the first year, less than one third of micro companies (less than five employees) were in merchant cash advance business after five years.
These statistics by themselves may be of merchant cash advance little value to you directly. We know how many small businesses survive and for how long, but it's far more important to know why some survive and others do not. There are a lot of studies on merchant cash advance small business failure. Searching "reasons for small business failure" with quotations on Google will give you almost 700 results (about 38 million without!). "Why small businesses fail" will give you almost a thousand. The 1997 study by Statistics Canada "Failing Concerns: Business Bankruptcies in Canada found major merchant cash advance nternal factors of small business failure was management deficiency, financial management problems and poor marketing.The Small Business Administration study "Financial Difficulties of Small Businesses and Reasons for merchant cash advance Their Failure" in 1998 found several causes of small business bankruptcy: outside business conditions (38.5%), financing (28%), inside merchant cash advance business conditions (27.1%), taxes (20%), disputes (18.8%), personal calamities and other (32.9%).
There is a wealth of merchant cash advance information on this subject, but what are the common factors? There are four basic areas:
External factors include new competition, your major client moving out of town, poor weather if you're a merchant cash advance seasonal business, or economic downturns. They're often largely out of our control, and may be unique to your particular company, but there are often ways to merchant cash advance mitigate them. For example, if you have a seasonal business, such as a landscaping company (at least up here in the merchant cash advance cold north it's seasonal) you could buy a bobcat to provide income during your off-season with snow removal. The bottom line is, have a contingency plan for external factors that could have a negative impact on your small merchant cash advance business success.
Big companies have the luxury of merchant cash advance being able to hire several people to get all the jobs done that need to be done, but chances are you're going to have to do merchant cash advance it all yourself, at least for awhile. That means you're not only going to have to develop your product or service, you're also going to have to make merchant cash advance financial, accounting, legal, marketing, human resources, and purchasing decisions.
You may do some of these tasks very well, but it's unlikely that you do all these tasks well, and merchant cash advance even if you do, you might want to contact a lawyer and an accountant at the very merchant cash advance least. And, research, research, and research some more, and when you're done researching, find an expert or two bounce ideas merchant cash advance off and give you solid advice.
Small businesses often fail merchant cash advance because of lack of planning. Let me make a bold statement: the single-most vital part of your business success is your business plan. Why? Simply put, your business plan specifically and concretely lists your merchant cash advance goals for the next few years. It spells out, step by step, how you're going to meet those goals, and merchant cash advance gives you something to measure your merchant cash advance performance against at the end of your merchant cash advance business year. Finally, a complete business plan helps you get financing and includes a marketing plan.
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Posted on: August 8, 2011 12:00 AM