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. Small Business

    Are You Considered a Small Business?

    Find out what it takes to be considered a small business by the U.S. Small Business Administration and why some small businesses are fairly large.
  3. Personal Finance

    Expanding Your Small Business With An SBA Loan

    Should you look to the Small Business Administration for a loan for your company? The pros and cons of going the SBA route, plus details on how to apply.
  4. 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.
  5. 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.
  6. Managing Wealth

    5 Reasons to Quit Corporate & Run a Small Business

    You're in a corporate job but itching to flex your entrepreneurial muscles. Here's why taking over a small business can make more sense than starting one.
  7. Small Business

    The Small Business Jobs Act: Make It Work For You

    Understanding how to manage business credit is the key to obtaining small business loans.
  8. Managing Wealth

    5 Barriers Small Businesses Must Overcome

    Small businesses can be nimble and innovative, but larger ones have name recognition, can raise capital and have other advantages that are hard to beat.
  9. Small Business

    How Many Startups Fail And Why?

    Why do so many businesses fail? And for that matter, how many of them actually do fail?
  10. Small Business

    Why New Businesses Fail

    While it’s unclear exactly how often new businesses fail, many do.
Hot Definitions
  1. Keynesian Economics

    An economic theory of total spending in the economy and its effects on output and inflation. Keynesian economics was developed ...
  2. Portfolio Investment

    A holding of an asset in a portfolio. A portfolio investment is made with the expectation of earning a return on it. This ...
  3. Treynor Ratio

    A ratio developed by Jack Treynor that measures returns earned in excess of that which could have been earned on a riskless ...
  4. Buyback

    The repurchase of outstanding shares (repurchase) by a company in order to reduce the number of shares on the market. Companies ...
  5. Tax Refund

    A tax refund is a refund on taxes paid to an individual or household when the actual tax liability is less than the amount ...
  6. Gross Domestic Product - GDP

    The monetary value of all the finished goods and services produced within a country's borders in a specific time period, ...
Trading Center