Top Reasons Why Business Fail
Before you know reasons why business fail, I want you to know that there is no way you can cure bad business if you can not prevent it. Your business won’t fail if you are able to see it coming and put preventive measures in place for it.
The key is early DIAGNOSIS and prompt implementation of curative measures. Common things occur commonly.
Here are a few common causes of business failures.
1. Wrong Purpose For Starting Business Makes Business Fail
It is said that, “You do what you love, and then, money will follow“.
When you have a product and service you care about, that you are passionate about, it is inevitable that you will be willing the needed price in term of resilience, learning, marketing, overcoming challenges, determination and discipline.
You will work tirelessly and surrender your all. This will not be the case if the business is started principally to become your own boss, to be on your own, to escape orders from a BULLY boss, or start a business of own just to have enough time for the family. This is one reasons why business fails, for startups precisely.
These reasons cannot supply sufficient drive and determination, an ailing business will demand along the way.
Here are a few corrective measures
i. You have a duty to develop passion and enthusiasm for what you do. You can develop this by learning more about it, reading everything you can find about it, and doing so everyday. The more love, admiration and passion you generate.
ii. Look at the possibilities of creating a product or service you are convinced would make a positive difference or a product you consider to be the very best.
iii. You’ll adopt a lifestyle that makes you mentally and physically fit to meet the inevitable business turbulence and challenges.
iv. You’ll sustain strong determination, a positive mental attitude, optimism and patience. These are needed mindset for success in business.
v. You must see every setbacks, as they come, as a priceless opportunity to learn some needed lessons in order to grow and develop business experience.
This also means that you become solutions oriented and not dip into depression. Find new ways to solve every problems on a daily basis. Live one day at a time.
iv. You must take charge of your mood and ensure it is good at times. Good mood is contagious. It gravitate to all departments and affects the staff and the customers. Customers only pay when they feel good.
2. Poor Business Management Skills
This is the number one reason for business failure especially in big corporations. It is poor skills in the vital component of management that inevitably leads to business collapse.
Every business man or woman should be thoroughly educated about business finance, hiring, de-hiring, marketing, selling, production, people or staff management, and must keep learning day by day.
The corrective measure for this is to discover what you’re not doing well and to become educated in it.
3. Neglect Of A Business
Inattention to regular supervision of daily activities is a great KILLER of growth and development of a business. Many business fail because of this.
There should be regular delegation and supervision. Focus and concentration is the key corrective measure against this.
4. Insufficient Capital Makes Business Fail
The business starters has a duty to consider and make adequate provisions for the cost of starting, and the cost of staying in business before the profits begin to come.
In many instances, it may take about 3 years to establish a good turnover before the emergence of profits. If adequate running capital is not put in place, the business may fail before the profits arrive.
The combination of these may lead to inadequate funding, and then, business failure. The natural way to raise start-up capital is saving. It is the neglect of long term regular savings that makes borrowing necessary.
The corrective measures for insufficient funds in business is to ensure that every business gradually saves a portion of its profits.
5. Wrong Business Location
Location is pivotal to Business success. The meaning of location is accessibility, the ease of reaching the place of business. Your customers must be able to access your business location easily. Many small businesses fails because of this.
The corrective measure for this, where the business in question is a shop, is heavy human traffic around the store.
Do you have any other reasons why business fails, pls lets have yours in the comment section.