A. M. 
Small businesses are a key driver of the economy and a major source of employment. However, a large part of them cannot be maintained over time. Beyond external factors, many closures are related to common errors that can be avoided with information, planning and adequate support.
Lack of planning from the beginning
One of the most common mistakes is starting a business without a clear plan. Many entrepreneurs start with enthusiasm, but without defining objectives, costs, prices, target audience or income projections. The absence of a business plan makes decision-making difficult and increases the risk of losses from the first months.
Poor money management
Poor financial management is one of the leading causes of bankruptcy. Mixing personal finances with business finances, not keeping records of income and expenses, or not knowing cash flow prevents us from knowing if the business is really making or losing money. Without financial control, it is easy to run out of liquidity, even when sales appear good.
Setting prices without calculating real costs
Many small businesses set their prices based solely on competition or what the customer is willing to pay, without correctly calculating production, operation and distribution costs. This can generate constant sales, but with margins so low that they are not enough to cover expenses or generate profits.
Going into debt without a clear strategy
Credit can be a useful tool but used incorrectly it becomes a problem. Some businesses acquire loans or buy on credit without evaluating their real payment capacity. When sales do not grow as expected, quotas become a burden that affects the stability of the business.
Not knowing the client and the market
Another common mistake is not studying the client or the environment in which the business operates. Changes in consumer habits, competition or market preferences can make an offer that previously worked obsolete. Not listening to the customer or adapting to their needs reduces growth opportunities.
Lack of formalization and legal compliance
Operating informally may seem like a solution to reduce costs, but in the long term it limits access to financing, support programs and larger markets. In addition, failure to comply with legal obligations can lead to fines, temporary closures or loss of credibility with suppliers and customers.
Not investing in improvement and training
Many businesses stagnate because they do not invest in improving their processes, products or skills. The lack of training in areas such as sales, customer service, technology or administration reduces competitiveness compared to other ventures that are committed to innovation and professionalization.
Rely on a single customer or supplier
Concentrating the business on a single client or supplier represents a high risk. If that relationship breaks down, sales or supply can be seriously affected. Diversifying customers and suppliers helps reduce business vulnerability.
Ignore warning signs
Finally, many entrepreneurs do not react in time to clear signs of problems, such as a constant drop in sales, late payments or increased debt. Postponing difficult decisions usually aggravates the situation and reduces the chances of recovery.
Recognizing these errors does not seek to demotivate, but rather to offer tools to prevent them. Information, planning and timely support can make the difference between a business that closes and one that manages to consolidate and grow over time.
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