Why SME's face challenges of failure in the early stages

Small and Medium Enterprises (SME's), are comming up almost everyday. however, these face a lot more challenges in the beginning compared to the large corporation. Here is a number of factors Directors of  SMEs' need to consider carefully in order to achieve the major goal of survival in a competitive market;

• Business plan/ Quality planning; Luck of focused planning is one of the major factors why SMEs' may fail to survive beyond a second birthday. All young companies should have planning a one way of directing the operation of their activities. Planning helps companies understand where they are and where they need to go. 
• Management Experience/ Competence; In order for SME's to thrive opposed to surviving in business, there is need to feel the competence gap. this can be done through,  

1. Have management attend any available training & capture free support
2. Access information through all available means e.g the Internet.
3. Seek professional advice (Smart people get the help they need).

•  Motivation (Setting very high goals & going for them); this will require you to among others,

1. focus on what is important  (your vision& values)
2. model yourself on someone that has already achieved what you are trying to achieve.
3. find a mentor / Coach to help you self-discover your own strategies for creating the results you so deserve.
4. shift mind set to "goal getting) from "goal setting"

• Ask your self questions, for instance (is your business a survivor?) Normally a survivor knows where they are & where they are going. Remember the market never stands Still, therefore;

1. have a clear idea of your business problems & weaknesses also have a plan to deal with them
2. be aware of the general business & economic environment
3. take action when there may be a problem & don't wait until the problem arises
4. have a current business plan
5. Review costs & overheads as well as sales
6. prepare regular mgt accounts & understand the figures
7. Prepare annual projections & cash flow forecasts
8. Regularly review actual performance against you plan
9. Prepare & use aged debtors and creditor lists
10. Set aside time just to understand your financial position

• Under Capitalization; Competition is generic in this age; Small & big companies not only compete for customers but also money from banks, investors etc. So place your self strategically in order to compete favorably.

Well we can go on & on, but normally its better to a take one thing at a time, well until next try these out and I a sure the sky will be the limit for your firm, organization or company.