Having a degree in business, helping with an academic project on small businesses, working at a small business causes me too wonder how many people do research before starting a small business. Research is crucial before starting a small business if you want your business to be successful. At any given time at least 20 million small businesses are being run in the United States. They create most of the new jobs created in the US. Sure starting you own business is exciting and fun but do you know that at least half or more of small businesses fail? Why do they fail?
---No research done before starting. Does your town have enough people to support the business you want to start? Has there been other stores with your idea that failed in your town. For example, if you live in a small town it's crucial to find an idea for something your community needs. If you live in an economically poor city people can not buy luxuries so your business has to fit your community.
---Location. Don't put your business in a place where it is difficult to get to or put it in a place that does not have enough parking.
---Be prepared financially to support this business until it takes off. This could mean a year's worth of money or more depending on the business.
---Bad managing. If you are going to have employees you have to be a good boss and be a good judge of character.You have to know that you can delegate responsibilities to your employees while you are taking care of other duties.
---Not enough knowledge about business practices, pricing, accounting, customers wants
To be successful know that most colleges these days have a small business degree that does not take long to finish or there may even be a program run by an outside source, .
Before you start your business know that your local small business agency can be a source of good information. They can help you get a loan and give advice etc.
Having a website for some businesses is a good idea.
Know that, depending on the business and how successful you want to be, you will have to spend a lot of hours working at this business.
This is not a complete list of reasons why a business fail nor is it a complete list of what you need to know to start a business. This article is just somethings I have learned and observed.