http://www.sme-blog.com/?p=264

July 8th, 2007 by Stefan Töpfer

While most people believe that most small businesses and home businesses fail, this is not true. The Small Business Administration or SBA reports that at least two thirds of new businesses survive the first two years. While 44% are able to complete their fourth anniversary.

A survey by Murphy Associates, Your Marketing Department, states that there are several reasons why small businesses fail and the most common being the lack of cash flow and the inability of manage funds in an effective manner. In fact 82% of businesses that fail do so due to this reason.

The survey also states that 78% of businesses fail because they don’t have a viable business plan and have not considered financial and management aspects of the business in an organized and thorough manner. 60% of small businesses that have closed down state that it is because they have not been able to follow their business plan in a practical manner.

Some of the other reasons include ineffective use of time and money, insufficient work experience, poor management skills and inability to manage human, material and financial resources. Remote and flexible working is some ways to create optimal working conditions for business success. An online office is also capable of integrating employees located in different spaces.