Common reason of business failure

[eLdavis]

The common reason for business failure is poor management, lack of good customer service, misappropriation of funds, lack of communication and not having adequate knowledge of how to run a business.

All that you have mentioned are indeed ways a business can fail, but from your point of view which is the most common one especially for a new business startup?

 

[Good-Person]

Simple reason for business failure can be lack of that business idea, lack of financial empowerment, lack of all disciplines attached to business, poor management. Lack of selling or producing good product to the costumers .

A lack of business idea also involves the fact that many people get into businesses they know nothing about and this often leads to loss of capital. It is always a good idea to get to know what you are about to do.

 

[Ghost1]

The major reason most of the business fail is because the managers and all the managing department of that particular company may not know they are guilty and as a result there is other conflicts in one way or the other and this can cause business failure. Conflict is always the main issue

I get your point. Very valid, a business might just be going smoothly until disagreement arises and everything just falls apart. Conflict must be duly resolved to avoid this

 

[Lucy ID]

There are many reasons why businesses fail, lack of planning is one of the major reasons for it, lack of concentration, lack of funds, lack of availability of materials, too much spending and many more

 

[Smiles20]

There can be so many reasons as to why people fail in their various businesses. There are some people who do not plan sufficiently before venturing into a business.

 

[Skysaint]

There are just so many reasons why a business fail that's why running a business enterprise isn't always as easy as it seems. Well, wrong location could lead to such, a very high competitive environment and lack of good business strategy

 

[Ononivami1]

Risk management is very important in a business. Once, you could manage the risk involved in the business properly. Then you are in business.

 

[Ghost1]

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.

From what you say, I can sum everything up to poor planning. A business that is well planned wouldn't posses any of those features. Proper planning is needed for a successful business

 

[jay]

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. Losing control of the finances. Bad planning and a lack of strategy. Weak leadership. Overdependence on a few big customers

I always tell people that capital and enough cash inflow into the business helps the business to survive but people keep on arguing that but I don't really mind because I've experienced it on several location where the cash that is involving the business always help is to survive.

 

[kinqzbitz]

Well the common reason for actually failing is the lack of customers and also lack of advertisement and communication with your workers and also giving out of things in credit

 

[Godspower]

There are just so many reasons why a business fail that's why running a business enterprise isn't always as easy as it seems. Well, wrong location could lead to such, a very high competitive environment and lack of good business strategy

An inaccessible or unfavorable location can make a business fail spectacularly. When deciding on the location of your business, always consider closeness to market, raw materials and customers.

 

[YERUS]

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.

Most businesses which fail do so because their owners did not gain necessary knowledge on the business.
Others failed because the owners could not manage their funds effectively.
Business owners must have certain skills that allow them to succeed at their business.

 

[eLdavis]

Well the common reason for actually failing is the lack of customers and also lack of advertisement and communication with your workers and also giving out of things in credit

I have seen some business owners who engage in promoting their business by advertising it online and both offline yet they do not have much customers, what do you think might be the cost then?

 

[Smiles20]

There are so many reasons that can make a business to fail. Among them is a lack of capital to take the business forward by the owners. Money is very important to keep up with competition.

 

[Elfinito]

There are few factors which some business men always fail to look into and these factors always lead to failure in their business.
First is having a good business plan. When you do not plan your business well, then you'll find yourself being confused on what to do.
Secondly is the bad management

 

[jay]

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. Losing control of the finances. Bad planning and a lack of strategy. Weak leadership. Overdependence on a few big customers

I also believe that getting into unnecessary expenses especially when the business is young is a very bad thing to do to your business as it's going to put you into a serious debt that will crumble the business.

 

[Heatman]

The main reason why some business fail is lack of planning, without good planning in a business can bring failure in business, for your business to be successful you need adequate planning.
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The main reason why some business fail is lack of planning, without good planning in a business can bring failure in business, for your business to be successful you need adequate planning.

If you really want your business to succeed then you could always make a good plan for how to run the business because once you fail to plan your already plan to fail.

 

[Ezekiel]

First i will say inability to define the purpose of the business secondly is lack of zeal to Learn from others,refuser to listen to correction

 

[Sotherefore]

First i will say inability to define the purpose of the business secondly is lack of zeal to Learn from others,refuser to listen to correction

What I have understand is that everyone that is starting a business will really want their business to be successful and as a result they may not really play with their business as we believe they are doing, this has led me to conclude that ignorant is just the cause of business failure.

 

[Immilash1]

We have countless reasons that makes most business to fail but the first one is mismanagement many people don't care about there business they just invest and live it that way.