Why Small Business Fails

One of the least appreciated aspects of entrepreneurship is why young businesses fail, and there's a simple explanation : They need to look at themselves.Why would they when its easier to blame others.

 Of course, there are cases that where something out of the owner's control has gone bad, but it was found out that those instances to be in the lowest level. What follows, according to some customer's experiences and observations are the top 10 reason why small business fails

1. The math just does not work. There is insufficient demand for the product or service at a price that is a profitable enterprise. This includes, for example, start-up trying to compete with Best Buy and economies of scale. 
2. Owners who cannot leave their own way. They can be tenacious, risk-averse adversary conflict - which means they must be liked by all (even the employees and suppliers who cannot perform their work). They can be a perfectionist, greedy, self-righteous, paranoid, angry or insecure. You get the idea. Sometimes you can even tell the owners problem, and they will realize that you're right - but he continues to make the same mistakes again and again.
3. Out of control growth. This may be the saddest of all causes of failure - a successful company, which is being destroyed by overexpansion. This will include moving into markets that are not so profitable, is experiencing difficulties that increasingly affect the business, or borrow too much money in an attempt to maintain growth at a certain pace. Sometimes less is more.
4. Poor accounting. You may not be in control of a company unless you know what happens. With wrong numbers or numbers that a company is in darkness, and passed all the time. Why? On the one hand, it is common - a misconception that an outside accounting firm had been hired primarily to ensure the taxes that the company - and disastrous. In fact, it is the job of chief financial officer, one of the many hats employer shall take up a real commitment.
5. The lack of a cash cushion. If we learned anything from this recession is that the business is cyclical and that bad things can and will happen over time - the loss of a major customer or criticism of employees, the arrival of a new competitor, the filing of a lawsuit. All these things can highlight a company's financial situation. If this company is already cash-strapped (and the potential for leverage), may not be able to recover. 
6. Operation of mediocrity. I've never met an entrepreneur who has described his mission mediocre. But we can not all be above average. Repeat and referral business is critical for most businesses, as is some degree of marketing (depending on the business). 
7. Operational inefficiencies. Paying too much rent, labor and materials. Now more than ever, companies are lean in favor. It has no staying power or the abdomen to negotiate terms that reflect today's economy can not leave the company competitive.
8. Dysfunctional leadership. Lack of concentration, vision, planning, standards and everything that goes into good management. Take fighting partners or unhappy relatives in the mix and you have a disaster. 
9. The absence of a succession plan. There is talk of nepotism, power struggles, the main actors being replaced by people who are over their heads - all the reasons that many family businesses do not the next generation. 
10. A declining market. Bookstores, music stores, printing companies and many others are facing changes in technology, consumer demand and competition from big business buying power and advertising revenue.

Life could be indulgent of friends and relatives, but entrepreneurship is rarely forgiving. In the end, everyone is also reflected in the soup. If people do not like the soup, the workers stop working, and customers to cease doing business with you. And that's why businesses fail.