The 5 myths that cause small businesses to fail

Each year, Americans launch businesses in the hopes of financial success, personal fulfillment, and independence. Unfortunately, these dreams are not always realized. Small business owners often put in a lot of energy and enthusiasm, but they don’t have the skills and planning to make it through.

The SBDCs in America — the 62 networks of small business development centers nationwide, and their almost 1,000 centers — find that a great business idea and a solid plan of action must be matched with a thorough understanding of financial and managerial needs.

Hemorrhaging money is the silent killer of many businesses. They believe that marketing is key to their success. Here are five myths that small business owners hold onto and lead to failure.

1. Don’t ask for help

No one has it. Many small businesses fail to take advantage of the many resources available for free. Why would you not use the free resources available to you? There are over 1,000 small business development centres in the United States.

2. Cash flow is not a problem

Money is essential to your business. You can manage your finances using many different platforms, such as Intuit and Finagraph. There is an entire industry dedicated to keeping your finances in order. Ignore them at your own peril.

3. Social media is not for you

What do you mean by “It is noisy, it is messy and I don’t get it”? Every customer has it in their pocket or purse. Why would you want to avoid your customers’ business?

4. Hire without worrying

Poor hiring practices are the cause of more problems than anything else. A careless employee could cost you more than you think.

5. Do not sweat the small details

You’ll be successful if you keep your details in order. The paperwork is annoying, but the lost opportunities and money are much worse. You’ll spend all your time trying to catch up after a license mistake here or a tax bill elsewhere.

All it comes down to is planning. Even the best ideas require planning – a marketing strategy, a production plan, or a management strategy. Passion and individuality are the driving forces behind great businesses, but poor implementation is what makes them fail. You’ll get far if you find a mentor, manage your cash flow and live on social media. Hire the right people and stay focused.