Common reason of business failure

[Blue house]

The most common reason is the same reason that most cars run out of gas. Nobody's paying enough attention to the dashboard instruments.
When businesses do fail it seems to happen overnight, but very rarely is that actually the case. On most occasions it is marked by a visible, steady decline in the Net Assets of the business, on the Balance Sheet, which has gone unnoticed until it was too late to fix.
While the individual circumstances of each business failure can be as diverse as the types of businesses that exist, the common thread will always be a lack of timely awareness on the part of the business owner/s as to what is going wrong.

 

[Hamza1]

One of the most important reason of business failure is lack of experience and knowledge about business. Many people start doing business without having any knowledge or experience from somewhere. And that cause their business fail badly and they loss all of their money in it.

 

[Diamond07]

If you are losing control of your finances, the business likely to fail. Also, bad planning could also cause businesses to fail. Failing to adapt and grow when the market changes is also a factor of business failure

 

[shakky2]

there are so many reasons business fail but the most common of them all is not being able to innovative in thinking after starting the business.this will lead to business failure and also if you have fail to plan then you have definitely plan to fail which is also a barrier to making a successful business

 

[Hassan14]

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 people fail in business because they don't pay attention to their business and they take out more loans and they live in the tension of when it will be paid and they fail in their business Me and I think the biggest reason is not to focus on failing in any business and borrow more and if we give up these two things we can succeed in our business.

 

[GIFTMICHAEL]

There are many reason that is associated to failing in business. mostly, if you lack proper fund in your business it will cause the business to crash, if your business is located in a wrong location your goods might end up expired without no patronage. You need to be discipline in business.

You are right @jimmann247.
When you have a business and you do not want your business to collapse like the rest you should be able to know how you can keep your customers and make them to feel better buying from you. If you lack good customer relation definitely nothing will safe your business.

 

[Folaham]

below are factors responsible for business failure

1. poor management of feedback
2. not focusing on activities to achieve result
3. failure to forecast and catch up with future trend (which is now the present reality)
4. poor management of information
5. wrong recruitment process (staffing)
6. financial misappropriation

 

[Tinaconcept]

There are so many reasons why business will fail some of this reasons are poor management, poor planning, lack of strategies, no book keeping or accounting and many more. When this factors ate not put in place, surely it will backfire and the business will fail.

 

[GeneBiz]

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.

I will express my opinion based on my own experience, in the past what caused the failure of my first business was the lack of a plan and a strategy, I had the capital but not the structure, I had the resources but I did not know how to manage them, I had the product but I did not know how to promote it ...

 

[Abigael]

One of the main reasons for business failure is lack of proper planning. One needs to really have a good plan before starting the business. This plan should preferably be written down so as to enhance accountability.
Another reason for business failure is poor management. Business resources if not managed well will lead to failure.

 

[Sunnytee]

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.

 

[Nimra Noor]

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.

Many business failure is due to not giving time properly to business means pay little attention on daily affairs ,needs and requirements of the business or low passion , discouraged due to previous experience ,less motivativation ,use low quality prodents and don't pay heed to customers opinions and suggestions

 

[Ziki]

Well, I think what we learned is that the instinct that most leaders have about success and and most people actually have about success is dangerous is is potentially distracting What I find is that when when you ask a company what success looks like The answer that you get, I get a lot is well

 

[Talibhussain074]

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.

There are many reasons for business failure. The common reasons for these are lack of funding, it does not have enough funding to arrange the business well. Business fails due to lack of finance. Apart from this, the business model also fails due to poor business. Marketing involves failed measures. Business also fails due to an inexperienced management team.

 

[enochfolorunso]

There are many reasons why people failed in a business.
Some companies don't know how to persuade people to buy what they are offering or how to convince customers to stay.

 

[Kiko]

Not Knowing about your Competitors is one of them. Whether you are trying to turnaround an under-performing business or a failing business, knowing what your competitors are up to can save your business. You must understand their products and services, what value-added benefits are they providing their customers.

 

[Afrinish]

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. The main reason if the failure of the busines keep the businss course .

 

[Roysnickz]

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.

You are correct, business is not for the faint hearted, every business involves a certain risk. As a matter of fact, if it doesn't involve any risk, it's not a business then.
There many reasons for businesses failures, ranging from lack of patience and consistency to inadequacy of funds.

 

[Psalmsavatar]

There are many reasons that could be responsible for the failure of a business.Businesses can fail as a result of wars, recessions, high taxation, high interest rates, excessive regulations, poor management decisions, insufficient marketing, inability to compete with other similar businesses, or a lack of interest from the public in what the business is offering the public.

 

[Halexcity]

Although loss and profit are attached to business and its possible the two happen I.e time of profit and time of loss. Common reason while failure occur in business is 1. Spending more than profit I.e when you spend out of your capital.
2. Lack of good packaging: if the goods or service rendering in a business lack good packaging there is no tendency of patronage, because the outside I.e the graphics gives insight of what's inside though it might be deceiving some time.
3. Lack of good relationship with the customer