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Chapter 1 of the text indicated that Managerial Inadequacy, Financial Inadequacy, External Factors are the most significant influencers of the demise of the small business Table 1.5 from Chapter 1 of the course materials lists several reasons why Small Businesses Fail. Chapter 5 is focused on business strategy and the development of a Business Plan. It is imported for new and existing small business owners to understand the pitfalls that they must work to overcome and the value that must be placed on establishing a culture of continuous strategic planning.
The goal of this Learning Activity is to understand why developing a Business Plan will help the small business to overcome the top reasons why most small businesses fail.
Create a table with three columns. The first column should list the reasons why a small business fails. The second column should identify the section of the Business Plan that specifically addresses the reason why the small business may fail in column 1. The third column should provide a summary of how this section of the Business Plan will provide a road map for mitigating the risk of the business failure.
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