Small Business: Causes of Failure


  • Plunging in without first testing the waters on a small scale.
  • Underpricing or overpricing goods or services.
  • Underestimating how much time it will take to build a market.
  • Starting with too little capital.
  • Starting with too much capital and being careless in its use.
  • Going into business with little or no experience and without first learning something about it.
  • Borrowing money without planning just how and when to pay it back.
  • Attempting to do much business with too little capital.
  • Not allowing for setbacks and unexpected expenses.
  • Buying too much on credit.
  • Extending credit too freely.
  • Expanding credit too rapidly.
  • Failing to complete, accurate records, so that the owners drift into trouble without realizing it.
  • Carrying habit of personal extravagance into the business.
  • Mistaking the freedom of being in business for oneself, for liberty to work or not according to whim.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

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Flatten your Organization


Flattening the organization means that each manager becomes responsible for more people. There is a limit to the number of people that one person can supervise, but this span of authority varies widely between jobs. Most people imagine that a manager can only handle a few subordinates. In reality, proper delegation allows you a surprisingly wide span, allowing a much flatter and leaner organization.

Your organization should have the best structure for achieving its goals. This structure shows the internal divisions of the organization; and the relationships between them. The structure is not fixed, but evolves to meet changing conditions. Unfortunately, this generally means a drift towards more complex structures, with more divisions, extra layers of management, longer chains of command, less delegation and more centralization. Endless levels of management can be used for minor rewards and recognition.

The proliferation of management layers is hopelessly inefficient. It forms an army of people whose only job is to force information to travel through a long and convoluted route before it is used, and makes sure that decision makers become hopelessly remote from the operations.

Delegation has clear advantages and empowerment allows you to reduce the layers of management. So the best type of organization is as flat as possible, with only a few layers of management. The organization must be flat, so that the top is connected to the people who actually make the money.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight