Why Small Businesses Fail
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BEDA Staff

Why Small Businesses Fail

(From Jessie Hagen of U.S. Bank, cited on the SCORE/Counselors to America’s Small Business website http://www.score.org)



  • 82% – Poor cash flow management skills/poor understanding of cash flow

  • 79% – Starting out with too little money

  • 78% – Lack of well-developed business plan, including insufficient research on the business before starting it

  • 77% – Not pricing properly or failure to include all necessary items when setting prices

  • 73% – Being overly optimistic about achievable sales, money required, and about what needs to be done to be successful

  • 70% – Not recognizing or ignoring what they don’t do well and not seeking help from those who do


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