It's with huge regret I have to inform my readers that one of the companies I recently featured has already bit the bullet. I just wrote about Sweet Georgine's Bakeshop in Benson, Nebraska a month ago too. Sorry, guess this one wasn't a winning startup after all. The official stink bomb award goes to Sweet Georgine's.
This is just a sad reminder that half of all businesses fail within the first five years of opening. However, Sweet Georgine's just opened in late April of this year (2008). She received lots of great reviews as well. The website says they shortened their hours for the summer, but this article says they officially closed their doors. Okay, first there was the failure of Bear Stearns, then Fannie Mae and Freddie Mac, then AIG, and now Sweet Georgine's. What's next?
The website 1000ventures.com lists the top 12 reasons businesses fail:
"1. Inadequate planning of the business.
2. Inadequate planning of the business.
3. Inadequate planning of the business.
4. Insufficient initial capital for start-up period and development stages due to inadequate planning
5. Mistaken estimate of market demand for product or service
6. Lack of management ability
7. Failure to select and use appropriate outside professional advisors
8. Inability to market products or services effectively.
9. Over dependence on a single individual or on a predicted specific event
10. Failure to understand capital requirements of a growing business
11. Poor timing of expenditures due to poor planning
12. Expedient rather than reasoned decision-making"