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.
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:
- Lack of management systems, such as financial controls.
- Lack of vision or purpose by principals.
- Lack of financial planning and review.
- Over dependence on specific individuals in the business.
- Poor marketing strategy.
- Failure to establish or communicate company goals.
- Competition and/or lack of market knowledge.
- Inadequate capitalization.
- Absence of standards for quality and performance.
- 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?