10 Reasons Small VARs Fail, Die or Implode

You run a small solution provider business, or perhaps you're an entrepreneur launching a managed services business. What are the 10 errors or mistakes that can kill a business such as yours? Here are some clues.

The VAR Guy

June 15, 2010

1 Min Read
10 Reasons Small VARs Fail, Die or Implode

managed services VARs that die

You run a small solution provider business, or perhaps you’re an entrepreneur launching a managed services business. What are the 10 errors or mistakes that can kill a business such as yours? Here are some clues.

First, The VAR Guy has to give a tip of his hat to Karl Palachuk, owner of KPEnterprises Business Consulting and a small business pundit who loves snackage. Within the latest HTG Peer Group e-newsletter, Palachuk describes the top 10 reasons small business fail, crediting the book The E-Myth Revisited:

  1. Lack of management systems, such as financial controls.

  2. Lack of vision or purpose by principals.

  3. Lack of financial planning and review.

  4. Over dependence on specific individuals in the business.

  5. Poor marketing strategy.

  6. Failure to establish or communicate company goals.

  7. Competition and/or lack of market knowledge.

  8. Inadequate capitalization.

  9. Absence of standards for quality and performance.

  10. Owners concentrate on the technical rather than the strategic.

Hmmm… that list certainly applies to small business VARs and MSPs — and even anonymous bloggers. But then again do anonymous bloggers need capitalization? Or just free WiFi at Starbucks?

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