By Kelcie McKenney
80% of small businesses fail in the first 18 months, according to Bloomberg. That’s a lot of new businesses, and in our economy, nurturing those companies is a must. So why are so many businesses struggling in their early stages? We’ve pulled together seven of the biggest reasons small businesses fail in those early months.
1. Not understanding accounting
As a small business it’s difficult to wrap your head around accounting, especially if you aren’t an accountant and don’t have one on staff. Managing your money is the first step when it comes to the success of your business, but you can’t manage what you can’t measure. One of the biggest mistakes small businesses make is not having a full understanding of their numbers. If a business is just starting out, hiring an accountant can be expensive. But, tools do exist that can give you the information you need without paying someone full-time.