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Why Do Start-Up Businesses Fail?

According to statistics compiled by the Small Business Administration (SBA), the top seven reasons why start-up businesses fail in their first three years of existence are:

1. Owner starts the business for the wrong reasons

2. Poor management

3. Insufficient capital

4. Poor location

5. No written business plan

6. Overexpansion (most often resulting in negative cash flow)

7. No website

A Business Plan Writers and Advisors written business plan and the financial projections that are prepared as part of each business plan can help the business owner avoid most of these failure reasons or help pinpoint flaws in the business concept that could lead to failure before they occur.

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Bureau of Labor Statistics data indicates 44% of all start up businesses close in their first three years. Three of the top seven reasons for failure are no written business plan, no website, and insu

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