www.allactiontrade.com .. a business to business website offers companies directory, trade offers, trade leads, yellow pages, auctions, trade shows

Written by Niraj kumar jha

Continued from page 1

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The Business Autopsy: A Fact Of Life

Written by Tim Knox

Continued from page 1

Believe me, I know.

The final contributing factor torepparttar death of sixty-three percent ofrepparttar 148042 businesses who died from bad management was thatrepparttar 148043 owners had no relevant or applicable business experience.

Bad financial planning wasrepparttar 148044 second reason sited byrepparttar 148045 survey as to why most businesses fail. In business, it's always about money. According torepparttar 148046 U.S. Bank study, eighty-two percent ofrepparttar 148047 business failures studied reported poor cash flow management as a contributing factor torepparttar 148048 death ofrepparttar 148049 business.

Seventy-nine percent ofrepparttar 148050 businesses were inadequately funded, and seventy-seven percent miscalculatedrepparttar 148051 cost of doing business. In other words, they failed to take into account all ofrepparttar 148052 costs involved when settingrepparttar 148053 price for their products.

Let's move on to my favorite subject: bad marketing. You've heard me preach this sermon before. You can haverepparttar 148054 greatest product inrepparttar 148055 world, but if your marketing efforts are inadequate or ineffective you will end up with a warehouse full ofrepparttar 148056 greatest product that no one inrepparttar 148057 world has ever heard of.

The study showed that bad marketing was a contributing factor inrepparttar 148058 death of sixty-four percent ofrepparttar 148059 businesses surveyed. Many of these misguided entrepreneurs either minimizedrepparttar 148060 importance of marketing and promotion or ignored it totally.

A vital part of marketing is knowing who your competition is and always knowing what they are up to. The entrepreneur who ignores his competition is a fool (gee, was that too harsh?) and is always destined to fail, as proven byrepparttar 148061 fifty-five percent ofrepparttar 148062 dead businesses inrepparttar 148063 survey who either didn't even know who their competition was or simply chose to ignorerepparttar 148064 competition altogether.

Here's a nice hole inrepparttar 148065 sand for you, sir.

Please insert your headů

Another mistake made by forty-seven percent ofrepparttar 148066 deceased businesses was that they relied on just one or two customers forrepparttar 148067 bulk of revenues. This is a common mistake made by many business owners who devote all their energy to one huge client. What they don't seem to understand is that if that one customer goes away, so does most of their revenue.

When performing your business autopsy you might identify other contributing factors that were beyond your control, such as a down economy,repparttar 148068 lack of qualified employees, new government regulations that negatively affectrepparttar 148069 way you must do business,repparttar 148070 failure of a strategic partner, etc..

There will always be things you can't control. The key to business success is to keep control of those things you can and do everything you can to prepare for those things you can't.

Next time we'll discuss a few things you should and should not do to help ensure your business success.

Here's to your success.

Tim Knox

Tim serves as the president and CEO of three successful technology companies and is the founder of DropshipWholesale.net, an online organization dedicated to the success of online and eBay entrepreneurs. http://www.prosperityandprofits.com - http://www.smallbusinessqa.com

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