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3.03 Starting a Business - Cause and Effect

AB
Failure to identify all possible investors for the new business.Lack of adequate funding.
Failure to conduct market research for the new product or service.There is no demand or need for the new product or service.
The business owner fails to secure required permits or licenses.Business owner is fined for illegal operation.
Failure to market the new business to potential customers.Sales are slow—potential customers are not aware of the product.
The business owner didn’t select a location that allowed for expansion.Business cannot expand due to lack of space on business property.
The business owner didn’t complete a market analysis.There are so many competitors for the product, that sales are very slow.
Failure to secure partners with management expertise.The business owner didn’t complete a Management Team Plan.
Failure to apply for loans or grants.Lack of adequate funding.
Business owner fails to pay taxes for the business.Business owner must pay penalties to the government.
The business owner didn’t complete a market analysis.There is no demand for the new product or service.
The business owner didn’t complete a thorough business plan or adequate financial statements.The bank or credit union refuses to approve funding for the new business.
The business owner fails to find a sufficient number of employeesThe business owner didn’t complete an Operational Plan.



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