Common reason of business failure

[Kelvin7656]

The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

 

[Dorcey]

Mismanagemet is the first thing that makes sense business fails. If the managers are incompetent or unqualified, he may not channel the business to the right course. And this may lead to failure of the business.

 

[Usman Sattar]

If you’ve ever started a business and failed, you might feel terrible about the loss of time, effort. and money.

In fact, you may even have beaten yourself up for like lack of motivation, laziness, partnering up with the wrong people, and so on. Besides damaging your self-esteem, this type of thinking also misses the mark. You are only thinking about the things that you knew.

 

[Zamaney]

A primary reason why small businesses fail is a lack of funding or working capital. In most instances a business owner is intimately aware of how much money is needed to keep operations running on a day-to-day basis, including funding payroll

 

[Snobar Bilal]

There are many reasons of business failure. One of the main reason is not to have complete knowledge about that business you are going to start. Complete planning is also a part of running a business. Running a business is not an easy task . Its is very difficult to run business by individually. Ups and downs are part of business .
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There are many reasons of business failure. One of the main reason is not to have complete knowledge about that business you are going to start. Complete planning is also a part of running a business. Running a business is not an easy task . Its is very difficult to run business by individually. Ups and downs are part of business .

 

[Hdre3m3n]

The common reason for business failure are:
When the business start taking money from the business untimely then the business is liable to fail.
When there is not a business plan to direct and organise the activity of the business,then the business is liable to fail.
When the business is involved in overtrading then it will buy much and sell less.
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The common reason for business failure are:
When the business start taking money from the business untimely then the business is liable to fail.
When there is not a business plan to direct and organise the activity of the business,then the business is liable to fail.
When the business is involved in overtrading then it will buy much and sell less.

 

[Kehinde]

Failure to market online. In an age where "Google" is a verb, if you're not marketing online, you're not selling as much as you could be. .
Failing to listen to their customers.
Failing to leverage future growth.
Failing to adapt (and grow) when the market changes.
Failing to track and measure your marketing efforts.

 

[Nurudeen]

The common causes of Business failure is lack of planning and adequate structure in place. If as a business owner you refused to plan your business In a that will make it go hand in hand with what is going on in the market it can cause a business failure in the long run

 

[Shayo]

Poor accounting.
Accounting helps in management if the business funds, which in turn is needed for the growth and expansion of business. A business that doesn't take its accounting serious is headed to failure because there will be no tracking of money earned, money spent, profit or loss.

 

[Akinwale701]

The most common reasons businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, unsuccessful marketing initiatives and lack of online presence.

You have a good point and you're making sense but I have a different opinion. Lack of funds is not the problem of many businesses as its not uncommon for someone going into a business to know that money is actually needed. The problem is bad management and inadequate leadership skills.

 

[Eyiteepraise]

The common reason for business failure are the following:
When the business start spending from his account then it is liable to fail.
When the business start involving in overtrading which will make it but much and sell less.

 

[Miracles04]

. BAD LOCATION
Location has always been on the top of the list of steps needed to start up a profitable business anywhere in the world. As always noted in our previous posts the location of your business has a very big influence in the success of your business. One of the holy books said you can’t lit a lamp and put it under a bushel same way you shouldn’t open up a business and locate it in a very scanty area all in the name of minimizing costs. It is better to locate your business in a very costly area where you would reap your fruits on the long run than situating it where no one can see it. We’ve always advised individuals to start up in a very busy area probably close to very busy road or even in a junction which connects two busy streets. If you are experiencing failure in your business try checking your location to see how it favours you.

2. INSUFFICIENT START UP CAPITAL
When you ask an entrepreneur the main cause for failure in his business or if you similarly ask an individual one of his or her major set-backs in starting and maintaining their business they would mention lack of proper funding. Starting up a business does not require large amount it requires enough amount because not every large amount is enough. Inadequate capital can make the most profitable business fail. There are a lot of expense to be made for a business which just started e.g rent, advertisement, electricity bills (for business who needs electricity), tax, trade union registration fee etc. so enough money is needed in starting up.


3. POOR MANAGEMENT
As defined by professionals in the field, management is the planning, organizing, controlling, directing of materials and human resources so as to accomplish a task easily. Most individuals who start up small businesses are usually not trained individuals, they do not have the know-how for running a business, as a result run into losses. Most of these individuals make decisions at the early stage which affects the business negatively in the long run. Some give out excess credits to customers which should not be, there should be some form of limit when giving out credits even as an established business. One thing to be done here is employ an expert who would help in running, some might say it is expensive to employ someone, you can make them partners in such a situation. You would share the profits, depending on your agreement.

4. COMPETITION
We must have heard this phrase life is all about competition. Most individuals go into business without anticipating competition, whereas, competition is one sure thing to meet in business. Of course you can’t be the only one having a type of business in your location. There might be up to three to four people doing same business so it is left for you to find out how to serve your customers better. You should try to improve on what your competitors are not doing while doing what they are doing.

5. LACK OF PROPER MARKETING
Most times small business owners do not really make plans for marketing and promotion of their business, they sometimes intentionally ignore the marketing aspect of starting their business which is very wrong. Marketing is all about promotion, advertisement and public enlightenment in which you try to make people aware of the existence of your business. This is very important especially as a beginner since no one knows about the existence of your business.
Knowing your target audience, knowing how to get their attention and convert them to leads and ultimately to a customer is one of the most important skills of a successful business. As much as you need a great product to win, you also need a great marketing strategy to convert that product into a continuous source of revenue.

6. BAD PRICING
There are several pricing strategies for small businesses, you can decide to put your price on the high side or on the low side. Pricing is really important, as it determines your profit Slevel. Bad pricing bad profit.

 

[redpogi16]

Starting a business can be a lot of fun and excitement. Success requires a lot of planning and starting the business the right way.The worst part about a failing business is that the entrepreneur is unaware of it happening until it is often too late. It makes sense cause if the business owner really knew what he was doing wrong, he might have been able to save the business.

 

[Victor-t]

The most common reasons small businesses fail include a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.

There are many common reason for business failure in the whole world today, although funding is part of it, but determination is one of the reasons, also fairing of risk and lazy, not not diligent, and not able to pay the sacrifice.

 

[Sucrelove]

Bad planning, weak leadership, lack of strategy , lack of capital

 

[Blessedsam60]

The common reason for business failure most times is failing to implement or put some strategy in place. A business owner can have everything in place and still fail in his/her business. Thou the place of exexperience and mentorship can not be underestimated.

 

[Thosynho]

Running a business is not for the faint of heart; entrepreneurship is inherently risky. Successful business onwers must possess the ability to mitigate company-specific risks while simultaneously bringing a product service to market at a price point that meets consumer demand levels.

One of the common reasons why business fail is impatience and lack of persistency. Every entrepreneur needs patience to grow business no matter how viable the business is. Being persistent in what you do also leads to breakthrough.

 

[Doradorwa]

Starting a business can be also be challenging and some people can even fail right from their.... No proper business orientation can cause you to fail and then lack of business survey... And when the business get along when you start to spend from it then it failure.

 

[Felixko]

Failure in business is very disturbing to the owners of company . common reasons of business failure are ; under planed issues , lack of knowledge about the business , lack of employees in the company , lack of evaluation in business , poor road network for transportation of goods, weather conditions and untrustworthy people in the country.

 

[Denuola]

.Poor cash flow management
You may be sick of being told “cash is king”, but it doesn’t change the fact that poor cash flow management can lead to the demise of any business. Indeed, even a profitable business can fall victim to a crippling cash flow crisis, which is often caused by the ineffective management of debtors, high stock levels, bad debt and late invoicing. Inadequate financing – or selecting the wrong type of funding for your business – can also put it on the path to failure. Without access to sufficient growth capital, whether in the form of personal savings, private equity or debt finance, your business may not have the “fuel” it needs to grow.

.Losing control of the finances​

Any business owner needs to be aware of their financials and cash position at any given time. The accurate forecasting of income and costs may lead to a few surprises, but it will ultimately help support your cash flow. Business owners should also understand and control their costs – acknowledging risks and opportunities – which should help minimise any nasty surprise.

Bad planning and a lack of strategy​

“Failing to plan is planning to fail” – cheesy but true. Quite simply, long-term planning is key to the success of any business. When mapping out the growth of their business, a business owner needs to conduct market research to establish who their customers are and what they need.