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No one sets out to purposely create a business that is doomed to fail from the start. Most of these people don't even realize that they are setting themselves up for failure. There are several ways that a business could go belly up in the fishbowl of life, and you need to keep a watchful eye so that your business doesn't get flushed down the toilet. Pay close attention to the practices that are going on in your business and you can spot the warning signs before they become severely problematic.


A way to prevent this lack of interest is by conducting research in your target area. Find out what the community would like to see in terms of a new business. You could even conduct research to find out what can be added to your own business idea that would set it aside from others or help generate that interest.

2. Expensive Toys - Many business owners will spend far too much money on equipment and tools that they don't necessarily need. A company vehicle doesn't have to be an expensive current year model. In fact, you shouldn't even consider a company car until the business has the actual net income to afford the extra bill. For the first 12 months, your company should be purchasing and using just the mere essentials of conducting your specific kind of business.

Upgrading can happen after your company begins turning a profit. Your business needs to get past that initial loss before extra spending should be warranted. By keeping purchases as basic and cheap as possible, you can ensure that your business has a better chance of survival.

3. Marketing Budget - Local advertising can help spread the word about your company. However, beginning business owners have a tenancy to spend a great deal of money on marketing budgets while having very little return. Young business owners can be easily sucked in to the glamor of an extravagant advertising method as pitched by smooth-talking sales people.

While advertising campaigns are important, you need to watch what methods work the best. Although you need an advertising budget of some kind, it doesn't need to be fueled by glitter from silver-tongued sales people. A bit of trial and error may be necessary in order to find what has the best return-on-investment for your marketing campaigns. Only spend what you can afford and not a penny more. Your business needs as much money as possible in order to survive.

4. Personal Versus Business Expenses - One of the biggest reasons why many will start a small business is the ability to make more money and set their own hours to work. In trivial times, you may be faced with the dilemma of paying personal utility bills or investing more money into the functionality of the business. There should be no doubt as to what should get paid first, but many don't realize this at the time.

If you're dependent on the business to supply your income, all of its needs have to be met first and foremost. If layoffs or pay decreases are needed in order for the business to survive, then that is what has to happen. The business needs to generate its own method of survival. It is a separate entity that needs to be cared for first. Various expenses can be decreased in order to promote a greater net income, but it still has to be able to carry itself without loans from an outside source. These loans could easily add another monthly bill that the business simply can't afford to pay if the money isn't spent towards improving the income.

These are just a few of the many ways that can kill a small business. You need to be able to adapt to any situation that arises and put out the fires as they develop. Waiting too long to devise a plan or tactic to prevent irreparable damage can be costly. Act on trials as soon as they develop or your business could find itself in the proverbial porcelain bowl ready to go down the drain.

Author Bio
Jason Miner an expert freelance writer loves writing articles on different categories. He is approaching different bloggers to recognize each other's efforts through "www.blogcarnival.com".