Small businesses are prone to failure. Capital, Management, and Planning are the key ingredients in the survival of a small business
- Businesses can experience a number of money-related problems. It may take several years before a business begins to show a profit.
- Many entrepreneurs lack the management skills required to run a business. Money, time, personnel, and inventory all need to be managed effectively if a small business is to succeed. Starting a small business requires much more than optimism and a good idea.
- Success and expansion sometimes lead to problems. Frequently, entrepreneurs with successful small businesses make the mistake of overexpansion.