Common Reasons of Business Failure

[Thosynho]

Common reasons of business failure according to my point of view is firstly the lack of consistency some of people are not much consistent and fair in their business dealings they do not prefer their business much according to business requirements. and the other reasons of business failure is low budget we could not meet with the business requirements in our low budget.

You are right. Consistency is highly needed in growing new business. I found out that this is affecting many entrepreneurs, they open shops for like a month and customers start to patronize them but maybe after a month, the business owner won't open shop to sell for customers for some days then the shop will be open again. This attitude kills business.

 

[marky]

Regardless of how great we think we are or is doing this business thing everything reduces to certain variables that can cut us down.
A few people neglect to do their market and field research prior to contributing or beginning their business. They will in general contribute in light of the fact that they have seen individuals do it and are fruitful.

 

[Folaham]

Unfortunately we can say that there are a lot of businesses today that goes to failure, it is because they lack factors that needs to be observed. Anyways let me provide you some common reasons of business failure.

a. They may not know how to win over clients
If a company doesn't know its clients well or treat them well, there is no point in improving lead generation. Winning customers over begins with knowing the preferences of consumers and tailoring goods to suit those desires and needs. Treating clients well begins when it comes to customer care by adopting best practices.

b. They don't know how leadership can be given.
With a bold vision, leadership is about inspiration and empowering the troops. It begins with developing partnerships by helping individuals inside the organization achieve their goals. Leadership is important; it is difficult to make good decisions or take successful actions without it. Leadership influences every part of an organization, from how workers function productively to how they manage operations.

c. They don't know how to market themselves.
Marketing does not begin by learning how to use tactics for advertisement and promotion. It begins with the differentiation of products. All its marketing efforts would be wasted unless a company can explicitly state why its product is different from others similar to it in the marketplace or come up with a specific value proposition.

I am very much sure that any of these reasons are correct, and how about you? Please let me know your thoughts on the comment section.

Unfortunately we can say that there are a lot of businesses today that goes to failure, it is because they lack factors that needs to be observed. Anyways let me provide you some common reasons of business failure.

a. They may not know how to win over clients
If a company doesn't know its clients well or treat them well, there is no point in improving lead generation. Winning customers over begins with knowing the preferences of consumers and tailoring goods to suit those desires and needs. Treating clients well begins when it comes to customer care by adopting best practices.

b. They don't know how leadership can be given.
With a bold vision, leadership is about inspiration and empowering the troops. It begins with developing partnerships by helping individuals inside the organization achieve their goals. Leadership is important; it is difficult to make good decisions or take successful actions without it. Leadership influences every part of an organization, from how workers function productively to how they manage operations.

c. They don't know how to market themselves.
Marketing does not begin by learning how to use tactics for advertisement and promotion. It begins with the differentiation of products. All its marketing efforts would be wasted unless a company can explicitly state why its product is different from others similar to it in the marketplace or come up with a specific value proposition.

I am very much sure that any of these reasons are correct, and how about you? Please let me know your thoughts on the comment section.

Starting business for the wrong reason is might make a business to fail.
If why you set up a business because is because
you desired freedom
you want money
you desired more family time
you want to be your own boss.
All above can only be achieved if you are successful because they are not the reason l for setting up business, they are benefits that comes later.
It is passion, drive, determination and positive attitude that sustain business. When other throw in the towel, you are more determined that ever

 

[Shahzad Ahmad]

I think, when you start a new business, you should take risks , because without risks successful business is not possible. Second one, you cannot give proper time to it, third one is the lake of proper knowledge about business when you started it. And last thing is that season is matter, you should start business in those days when it's marketing will grow up.

 

[Youngdee]

Unfortunately we can say that there are a lot of businesses today that goes to failure, it is because they lack factors that needs to be observed. Anyways let me provide you some common reasons of business failure.

a. They may not know how to win over clients
If a company doesn't know its clients well or treat them well, there is no point in improving lead generation. Winning customers over begins with knowing the preferences of consumers and tailoring goods to suit those desires and needs. Treating clients well begins when it comes to customer care by adopting best practices.

b. They don't know how leadership can be given.
With a bold vision, leadership is about inspiration and empowering the troops. It begins with developing partnerships by helping individuals inside the organization achieve their goals. Leadership is important; it is difficult to make good decisions or take successful actions without it. Leadership influences every part of an organization, from how workers function productively to how they manage operations.

c. They don't know how to market themselves.
Marketing does not begin by learning how to use tactics for advertisement and promotion. It begins with the differentiation of products. All its marketing efforts would be wasted unless a company can explicitly state why its product is different from others similar to it in the marketplace or come up with a specific value proposition.

I am very much sure that any of these reasons are correct, and how about you? Please let me know your thoughts on the comment section.

I support your points and I must quote the popular saying that says one who fails to plan, plan to fail. If a business does not have a good business plan it will crumble. Also marketing is the heart of a business when there is no proper advertisement of the product of service rendered it will be very hard to win customers and you have to be watch out for your competitors.

 

[Divulgence]

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. Lack of competent personnel. Lack of managerial intuition.

 

[Neta Sam(Samuel Odunlade)]

There is a saying that goes thus; when the purpose of a thing is not known abuse is inevitable. 1)The first question is what is the purpose of setting up your business (2) are you in the right location (3) Do you understand your competitors(4) Do you know your market structure (5) do you have adequate knowledge about the business you want to do or you are doing. If you can answer this questions, you will understand why a business fails and why some did not fail

 

[Oluwasayofunmi]

answering the question common reasons for a business failure, firstly a business without a goal will not succeed, because all business needs a goal to keep them moving forward. Secondly, business that does not want to take any risks is likely to fail

 

[Philip Omotayo]

The foremost reason for business failure is lack of adequate information and knowledge about the business. Secondly, insufficient requiresd skills to control the affairs of the business. Thirdly, when there is no quick turn over about the business. Finally, business fails because of lack of an appropriate location.

 

[Chibson]

There are several reasons why businesses fail.
Lack of proper planning dance stunt the growth of a business overtime. If you want to go into business, map at proper plans and strategies to make the business succeed.
Another factor is lack of proper funding. If a business is not well funded in the area of advertisement as so many of them.

 

[Kiko]

Lack of Planning. Anyone who has ever been in charge of a successful major event knows that were it not for careful, methodical, strategic planning and hard work success would not have followed. The same could be said of most business successes. Overexpansion. A leading cause of business failure, overexpansion often happens when business owners confuse success with how fast they can expand their business. A focus on slow and steady growth is optimum. Many a bankruptcy has been caused by rapidly expanding companies.

 

[redpogi16]

If you want to know what are the problems or challenged a business can face down to its failure. First is poor cash flow management, second is Bad planning and a lack of strategy, third is Overdependence on a few big customers, and that was the common problems you will face when doing a business.

 

[Ezzyoj]

These are actually valid points. Many businesses failed because of inadequate planning and strategies. I have seen a good profiting business failed because of its situated location, some because of customers relationships, some because of quality of delivery, and some because of packaging. Business can fail for several reasons.

 

[oluwaseun tope]

The reason why some business fail is because some of the businessmen and women fail to plan and when they fail plan they plan to fail why some of them spend beyond there income some of them even do family and friendship in there business.

 

[Halexcity]

Some of the factors that always cause failure in the business are lack of patience: when you are doing business and u lack patients or expecting high profit in a short period of time there is high tendency of the business going down.
Availability of goods : when goods are not always available customers will forget patronising you.

 

[Dubai]

You are very correct and detailed about the factors. In addition to what you listed, lack of for sight and understanding of the business trends are the major killers of business.

 

[Fabby]

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.

 

[mubinadaddy]

History has it that so many newly business startup are bound to fail within 5-10years in other for yours not to fall in that category you need to work on yourself and your employee to be hardworking and be nice to them.

 

[KvngMurphy]

Amongst the common reasons why businesses fail includes
* Leadership failure :- Your business can fail if you exhibit poor management skills, which can be evident in many forms. You will struggle as a leader if you don’t have enough experience making management decisions, supervising a staff, or the vision to lead your organization.
* Not in touch with customers need :- Your business will fail if you neglect to stay in touch with your customers and understand what they need and the feedback they offer. Your customers may like your product or service but, perhaps they would love it if you changed this feature or altered that procedure.
* Poor financial management:- You must know, down to the last dime, where the money in your business is coming from and where it’s going in order for your business to succeed. Your business can also fail if you lack a contingency funding plan, a reserve of money you can call upon in the event of a financial crisis.

 

[Oliver 20]

The most well-known reasons business fall flat incorporate an absence of capital or subsidizing, holding a lacking supervisory group, a broken foundation or plan of action, and fruitless advertising activities