Small Business Opportunity

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The majority of small businesses that fail do so because of lack of cash. A 2004 U.S. Bank study said that 79 percent of small business failures cited “starting out with too little money” as one of the reasons for the business downfall. Often, this is because owners borrow based on their ideas of a successful business, instead of borrowing for a worst-case scenario. A start-up business owner needs to be optimistic, but often is too optimistic about seeing profits. Without adequate cash flow, slow sales or a downturn in the market can end the business before it has a chance to gain momentum.