Common reason of business failure

[Justin]

If the business was stated with loan money and if the business did not generate profit since the early on, the business can fail because it will have to pay the loan before the business is making profit.

 

[Kaffyfolla]

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 surprises. Employing an experienced accountant, or investing in a good cloud-based accounting solution, can help ease the burden of financial management, allowing you to focus on day-to-day business operations.
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A bad location is self-explanatory if your business relies on location for foot traffic. Just as dangerous, however, is a poor Internet presence. These days, your location on the Internet and your social media strength can be just as important as your company's physical location in a shopping district. An online presence will let people know that they can give you their business, so if the need is already there, the availability and visibility of your business is the next important step.

 

[Good-Person]

Lack of planning is when you ignore the value of planning and don’t bother to learn the methodology of planning. A good plan should include both short- and long-term goals as well as a way to measure goals and results.

Correct methodology involves planning in an efficient way in order to manage and deal with the problems faced by the business. This is why financial planning and the right kind of business strategy is very crucial for running the business.

 

[Shigobad20201]

Some people lack business plan and strategies , they decided to be fluctuating and not follow just a plan most especially when they realises others are doing well, they neglected their actual plan and follow others plan.
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Some people lack business plan and strategies , they decided to be fluctuating and not follow just a plan most especially when they realises others are doing well, they neglected their actual plan and follow others plan.

 

[eLdavis]

If the business was stated with loan money and if the business did not generate profit since the early on, the business can fail because it will have to pay the loan before the business is making profit.

If am not mistaken, you are saying most business fail cause they started with loans and in the end the business didn't really go as planned hence they have to look for ways to pay back the loans right?

 

[kayode10]

A business will fail if the owner did not have a fundamental knowledge on how to run a successful business. a business will also field if those who are running a business are mismanaging the business fund.

 

[Heatman]

I major reasons why business fails is planning, if you don't plan well your business end up failing, you should always plan. A successful business owner is a good planner, you should also be a good organiser and also have good interpersonal communication skil with your costomers and also with your workers.

Adequate planning is one of the core foundation that any business owner would have to do in order to ensure that his business Will survive whatever challenges that is going to face.

 

[greenie]

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

 

[kayode10]

A business will fail if the sales is not coming regularly. This can be as a result of poor marketing of the product or services. This is the reason why it is very essential for an entrepreneur to have basic knowledge on how to create awareness and promote their products to the right audience.

 

[Swazykid4all]

Common reason for business failure is lack of proper planning and mismanagement of fun,. This has really cripple many businesses. To run a proper business they must be checks and balances in every area.

 

[eLdavis]

A business will fail if the sales is not coming regularly. This can be as a result of poor marketing of the product or services. This is the reason why it is very essential for an entrepreneur to have basic knowledge on how to create awareness and promote their products to the right audience.

That's right, how you market your goods would determine how the sales goes. But what about a situation where you market your goods and services and you are able to reach out to so many persons but they are not your target audience, should this also be classified as poor marketing?

 

[Psalmseen]

Starting a new business isn't easy.. most people only have the passion to start a particular business but they lack the required technique and approach to make it a successful one. The first thing to do is to have a very good plan for your business that'll serve as a blueprint

 

[Shigobad20201]

Common reason for business failure is lack of proper planning and mismanagement of fun,. This has really cripple many businesses. To run a proper business they must be checks and balances in every area.

One of the reason for business failure is bad location which is not suitable for the business, imagine running saloon business in a remote area where few people lives , If you have proper planning , you will get a better location for your business.

 

[Omotayo]

As you can see the comments inder this thread is massive, understandably when it comes to business failure, a lot of reasons can be cited. I think the major ones are just laziness, lack of funds and mismanagement.

 

[Laurentta]

Some common reasons business fails include:
Improper planning
Lack of funds or inadequate capital
Bad business location and many others.

 

[kayode10]

Lack of ability to generate new customer's is the reason why some business fail. It is good to always attract new customers to the business in order to ensure consistent sales. it can be very hard for a business to survive if it is not generating consistent sales.

 

[Bousine123]

Sometimes a business can fail when there is death of the owner, many businesses have failed during the covid-19 pandemic, some business partners could not wake up to answer their phone calls anymore.

 

[Lucy ID]

Starting a business is not an easy one if you are not dedicated or focus you will fail or give up. Some common reasons why some businesses fail is due to lack of proper research, planning, arrangements and lack of enough funds to start

 

[Bousine123]

Trusting the wrong people can also make a business to fail, a neighbor of mine once trusted her adopted daughter to her business, even when people told her how the girl steals money in the shop, it was too late when she found out.

 

[Josephjossy]

Everything you do in this life is a risk, living a life itself is a big risk, so running a business is also a risk. It is left for you to decide if you will take the risk. Don't be afraid of taking a risk, don't be afraid to fail. Just take the risk