From Small Business Trends: 10 Reasons Small Companies Fail
No small company wants to go out of business, yet many do. And the younger the company, the greater the likelihood that it will.
According to the SBA Office of Advocacy (PDF), about two-thirds of businesses with employees survive at least two years, but only 50 percent make it to the five-year mark and just one-third celebrate their 10-year anniversary.
The rates of companies that go out of business have changed little over the past 20 years, the SBA says, and are consistent across a range of industries, including manufacturing, retail trade, food services, hotels and construction.
Why do small companies fail and go out of business?
Unfortunately, the reasons are many and all too common. Here are ten to consider, along with advice on what the business can do to avert disaster before it strikes.
Source: From Small Business Trends Click here to read the entire article.