3 common reasons small businesses fail-and how to avoid them

The video discusses the high failure rates of small businesses and outlines three key mistakes to avoid: lack of market research, poor cash management, and insufficient business management skills. It emphasizes the importance of targeting a specific audience, realistic budgeting, and assembling a skilled team to ensure business success.

What is a common mistake new entrepreneurs make that can lead to business failure?

• Focusing on a narrow market segment

• Identifying specific customer needs

• Trying to cater to everyone

• Conducting thorough market research

Why do many small businesses fail due to cash management issues?

• They overestimate their expenses

• They have too much funding

• They run out of money

• They have too many customers

What is a recommended strategy to avoid cash management pitfalls?

• Be overly optimistic about revenues

• Secure multiple sources of funding

• Ignore expenses

• Rely solely on personal savings

What is a key reason many new ventures fail according to the final section?

• Excessive marketing

• Inadequate business management skills

• Poor location choice

• Lack of a unique product

How can small business owners compensate for their lack of management skills?

• Focus only on product development

• Ignore business planning

• Avoid hiring new staff

• Assemble a team with proven skills