There are many people who want to be self dependent and want to try something new in their life. They want to reach people in faster pace and even would like provide service to people by their business. They start with small business by thinking of slowly increasing it so to get more returns and good exposure. Many reach their goal but others fail to do so. There are many who even close their newly opened business after experience great loss.

There can be many reasons behind it such as lack of marketing of the business, poor service to their customer and client, not thinking out of box etc.  Small business finds it difficult to compete with big business that are already established and have conquered the market. While starting new small business there are some key factors that should be remembered, which most of the new comers fail to recognize and use. If you are having wrong connection or even less networks than that can affect your business a lot and your competitor will overtake you in less than a time.

I my self running a Professional SEO Company and I personally done some research that why small business generally fails during their first 2 year of their live, here are 5 reasons why startups small business fails within 2 years:

1)      Less Network:

Network plays an important role in any business whether it is small or big. Having good amount of networks can really help your business grow. If you are bad in making friends and networking with people than having own business is not for you, go for other job. Developing network is not an easy job to do and if you have developed it, you should know how to carry with it. There are some small business owners who work for their own people by thinking that by their own personal contacts they will increase their network, which is wrong.

2) Lack of Niche Problem:

If you want to grow your business than it’s not just selling your service to those who have good money, it is like targeting people.  Take enough time to develop good niche for your business.  Before starting your business make sure what and to whom you want to target and what your niche is? Then act as per your idea effectively.

3)      Lack of Capital:

For any business, capital is an important part for which can help it to run successfully. Before starting any business look at your capital which you have, this can give a rough idea on starting the business. Having lack of capital in your business will automatically affect your business and in reaching to people.

4) Lack of Ideas:

To connect with customers and to attract them you need a bunch of ideas in your mind that should work in a better position. Having lack of lack of ideas for your business will affect your business and you may fail to give your clients and customers something new that they are in search of.

5)      Lack of Motivation:

This is the big part where most of the small entrepreneur fails to get. Small businessmen need lot of patience and motivation so that they can carry for longer term and effectively.