Top 6 Reasons New Businesses Fail

AAA

It's often said that more than half of new businesses fail during the first year. According to the Small Business Association (SBA), this isn't necessarily true. The SBA states that only 30% of new businesses fail during the first two years of being open, 50% during the first five years and 66% during the first 10. The SBA goes on to state that only 25% make it to 15 years or more. However, not all of these businesses need to fail. With the right planning, funding and flexibility, businesses have a better chance of succeeding. We'll go through some of the biggest mistakes that start-ups can make and figure out how to improve your chances of success.

  1. No results found.
Related Articles
  1. Small Business

    Top 6 Reasons New Businesses Fail

    Running your own business may be the American Dream, but it's become a nightmare for many entrepreneurs. Learn how to avoid the most common factors leading to bankrupt businesses.
  2. Managing Wealth

    How ‘Small’ Is a Small Business: The Statistics

    Doing the math will help you determine if you qualify as a small business and when your business gets too big to be small. Turn to the SBA for help.
  3. Investing

    KeyCorp Boosting Small Business Loans (KEY)

    KeyCorp will increase its small business lending program by 44% from a year ago, crushing loan volume records for the bank.
  4. Small Business

    The 4 Most Common Reasons a Small Business Fails

    Discover the most common reasons small businesses fail, including capital formation, management concerns, planning issues and marketing missteps.
  5. Small Business

    6 Ways To Fund Your Startup's First Year

    Pursue your entrepreneurial goals by picking the startup plan that's best for you.
  6. Personal Finance

    Getting Government Loans For Your Small Business

    Would a government loan provide a more cost-effective way to finance your business? See whether your company qualifies for a government loan.
  7. Small Business

    Why New Businesses Fail

    While it’s unclear exactly how often new businesses fail, many do.
  8. Small Business

    Business Startup Costs: It's In The Details

    Don't overlook the details when starting up a business. It's the small expenses that have the potential to make or break a great idea.
  9. Managing Wealth

    4 Reasons Small Businesses Fail to Grow

    Owning a small business can be financially rewarding, but there are certain obstacles that may make building sustainable wealth more difficult.
Hot Definitions
  1. Investing

    The act of committing money or capital to an endeavor with the expectation of obtaining an additional income or profit.
  2. Stagflation

    A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, ...
  3. Notional Value

    The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets ...
  4. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
  5. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  6. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
Trading Center