Starting a Business

It is not easy to start a new business,one must be skilled in many areas to be successful. There are many reasons a business could fail like competition, building a customer base or lack of record keeping. Competition is almost always a problem for new businesses unless it is a original idea. A business will generally experience competition from more experienced business with more knowledge. In order for a business to survive, it must establish itself in the market and build a reliable customer base. the longer the business survives the bigger the customer base gets. Lack of record keeping is a common issue when it comes to failed businesses. Many entrepreneurs fail to keep accurate recording,they believe that it is  less important than meeting the customers' needs.

Lack of working capital,Poor management skills and changes in business environment are also major issues entrepreneurs fail to run a successful business. Lack of working capital is when the entrepreneur runs out of money to keep his business going. This happens to a lot of businesses and that causes them to shut down. Most entrepreneurs have had some form of work experience,but not necessarily at a management level. They have not gained the experience they need to run a successful business. there is always the risk of change,many businesses can change if one of the following changes occur : new competitors,legal changes,economic changes and technological changes.