why do small business?

Most people love doing business during the good times—when sales are up, customers are happy, and profits arrive. But what trips many up is starting without understanding the early challenges: the hunger period when cash is tight and harvest months seem far off. It’s during this lean season that vision and planning can make—or break—a venture.

One of the most common causes of business failure is poor cash‑flow management. Studies show that up to 82 % of small businesses fail because they run out of cash even when they appear profitable Bankrate+14Score+14Reddit+14. As one small‑business owner bluntly put it:

“They run out of cash while things were going well, thinking profit is the answer…” Reddit
That mismatch between revenue recognition and actual liquidity causes the business to collapse before the payoff actually arrives.

To survive those early lean months, companies must adopt a lean startup mindset: build small, test quickly, learn from real customer feedback, and pivot if needed—rather than spending on elaborate marketing or premature scaling Investopedia+1Reddit+1. Tracking metrics that matter—like cash runway, churn rate, and break-even timeline—beats vanity metrics that look good but don’t reflect financial health.

A clear vision becomes crucial when patience is your main resource. As Money254 reports, many small businesses in Kenya fail because they lack a well‑defined business vision or goals Reddit+15Money254+15Reddit+15. Without goals tied to measurable milestones—customer traction, repeat buying, margin improvement—entrepreneurs lose focus just when perseverance is most needed.

Harvest finally arrives only after surviving the starvation period with discipline:

• A well‑maintained cash buffer,
• Honest financial projections,
• Frugal spending even in early wins,
• A strategy built to adapt.

In short, business isn’t just about growing when things are good—it’s about planning so you don’t starve before the harvest. Build lean, test fast, manage cash, and stay focused on a vision that endures through even the toughest season.