Starting a business is a great way to be financially free. It is hard working a 9 to 5 and you see that all your hard work is not taking your life to the next level.  There are several steps that you must take to ensure that you will have a successful business and to avoid debt.

Before you open your business many decisions that must be made.

• The first thing that you have to do is pick the product or service you want to offer customers. It is important to research to see if there is a market for what you are selling, you don’t want to invest money into something that won’t produce a profit.
• Once you know that your service or product is profitable to make sure you know who your target audience is.
• Having a clear understanding of your target audience is essential because it will help you save money by only marketing to people you know have an interest in your type of business.

Given below are the reasons Why businesses fail? What are the solutions?

How to have a successful Business?

Remember to also create a financial plan which could be done with a financial advisor to get a clear understanding of how much your startup cost will be. Once you know how much it will cost to start your business advisor can help you create a budget to keep your personal and business income stable. It can be very stressful starting a business from the ground up and there are tons of things that will need to be managed having a financial advisor can help properly manage your finances.

Another important financial concept that should be discussed is planning for filing business taxes. There are technical elements that must be correlated with your states business laws. As a business owner, you must have all of the proper licenses and paperwork to ensure that you can file your taxes correctly. A financial advisor can pass on the proper knowledge to ensure you can write off certain business expenses. It’s important to note that there is a difference between filing as a sole proprietor or a business or company. There are ways that you can file your taxes that will benefit both your business and personal finances.

Risk Management should be planned when starting a business, most new businesses don’t make it past five years. Creating budgets will greatly impact how you can keep your business save during difficult times. If you’re running a business that has employees, you must also consider their wages and if they will have any benefits. It is also important to market your business effectively to reach new customers which can lead to more sales. Nothing is 100% guaranteed but have proper risk management can help keep your business going year after year.

It takes a lot of work and planning to start a business and it is vital that you have financial guidance. When it comes to filing your taxes, you should have the right information to comply with your state laws. Always create a monthly budget and make sure you are continuing a profitable business. Risk management plans should be implemented to help keep your business going.

The image below shows why one should have a financial advisor

Why you need a financial advisor

Why Businesses Fail

Let’s look at the main reasons for which most businesses fail. This would help you as by identifying the main reasons for which most businesses fail, it would be easier to avoid them proactively. And for your convenience, effective solutions to those complications are also given.

With the complexity of business failure in mind, here are some of the commonly listed reasons for why businesses fail:

• 82% experience cash flow problems
• 42% find that there is an insufficient need for their product or service
• 29% run out of cash
• 23% do not have the right team
• 19% are out-competed

Why Startup or New Business Fail and what are the solutions

Running a business is no easy task. There’s no changing the fact that the vast majority of startups will meet their bitter end. That said, a better understanding of the above causes of failure may help to mitigate the risks of any new venture. Having a financial advisor can help you minimise the risks. And even if a startup does meet its maker, the founder may still have another shot: failed entrepreneurs often find more success the second time around.

As Winston Churchill says: “Success is not final, failure is not fatal: it is the courage to continue that counts.”