Running a successful business is no easy task. According to the Small Business Administration (SBA), nearly half of all U.S.-based businesses with two or more employees fail within within the first five years. That’s a pretty shocking number that attests to the difficulty of starting a new business. But the first step towards ensuring your business is a success is to understand why businesses fail in the first place.
Lack of Passion
One all-too-common reason why startups fail is because the entrepreneur behind it lacks passion. Some entrepreneurs are drawn to the allure of running their own business simply for the money. But when they realize it isn’t something that they actually enjoy doing, their business suffers as a result. If you’re going to embark on starting a new business/venture, make sure that it’s something you are truly passionate about; otherwise, the business is doomed for failure before it even starts.
Hiring the Wrong Employees
Another reason why startups fail is because the owner hires the wrong employees. Employees are the backbone of any successful business; they streamline everyday processes, communicate with customers, and keep the business running as normal. When a “bad apple” is hired, though, it can have devastating consequences, discouraging customers from purchasing the business’s products and/or services, while creating internal conflicts within the business itself. The bottom line is that business owners should choose their employees carefully.
It’s not something most business owners want to think about, but disasters are a very real possibility. Whether it’s fire, flood, theft, or cyber attacks, these are all things that can send an otherwise profitable business into the red zone. Unfortunately, there’s no way to predict when a disaster will occur, nor can you always prevent them. However, purchasing insurance for your business will ensure that it stays afloat in the event of such disasters.
When you’re busy performing all of the everyday tasks that go into running your business, it’s easy to overlook accounting. If you struggle with accounting, consider signing up for Intuit’s Quickbooks software. There’s a reason why Quickbooks has become the world’s leading accounting software for businesses: because it’s efficient, versatile and easy to use. Don’t take my word for it, though. See for yourself why so many business owners place their trust in Quickbooks.