Never give up on your dreams — but, most U.S. small businesses are not in business five years after they start up, Scott Shane grimly writes in Small Biz Trends. To avoid the five year failure mark, focus on your finances and be aware of where your money is or isn’t going. Keep your business in healthy operation by avoiding the following small business mistakes. No Business Plan Daily Worth writes that a good business plan will ground you in the reality of your business. A thorough goal-oriented business plan can keep you away from the 50,000 foot view many entrepreneurs are prone to having. A solid execution is paramount, and a business model is the foundation for that execution. A business plan should contain cash-flow estimates, financing requirements, market projections, and a breakdown of startup costs. Underfunded Businesses Once needs are documented in the business plan, the right funding is your next goal. Without sufficient startup capital, you’re setting yourself up for unplanned debt. High-rate loans or credit cards as short-term solutions are tempting. Maximize your resources, including savings and bonds. Whole life insurance policies can be cashed in, and you can sell structured settlement payments for [...]
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