March 11, 2009

Why do a lot are planning to start a business?

Reading from different US business bloggers, each and everyday I learn how these people are very much active in business and even a lot more have that burning spirit of starting their own business. So I started to wonder. I have found an answer for my question which is my title for this post -- Why do a lot are planning to start a business? I quoted it below.

Development of value-added enterprises, corporate downsizing, a generally favorable economy and ill feelings toward corporate America are reasons that have been given for recent increases in the number of people starting small businesses. While small business growth represents a positive contribution to the nation’s continued economic expansion, entrepreneurs need to be aware that it takes more than a good idea for a small business to succeed. Small business entrepreneurs must plan for success. This includes market research, identifying the primary audience/consumer and developing a five or ten year plan that includes cash flow, financing and expansion concerns.

I quoted from a business pdf file from Agricultural Development Center of the University of Tennessee. Check it out as it also discusses planning a business against a failure which I regard it as highly important. To give you a hint of what you will learn I quoted few thoughts from the pdf file.

While no person should start a new venture preparing for failure, they should have a clear plan for success which involves actions if things do go wrong. Every business has a life span that is depicted by its business life cycle. A business life cycle is normally defined by four stages; Introduction, Growth, Maturity and Decline. Most business life cycles will experience a slow introduction and growth stage, a short maturity stage and a rather quick decline stage. Determining why most businesses fail can be a helpful identification of the eventual decline phase of a business.

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