Common Reasons of Business Failure

[MarieArie]

Often, to fund the launch or acquisition of your company, it's appropriate to go into debt. Few potential company owners have the money on hand to spend out-of-pocket, so credit is a viable way to help fund a new business.
But it gets harder and harder to expand operations if you don't give priority to repaying your debt and making timely payments.

 

[Yasmin]

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.

 

[Adesuwa]

The common reasons for business failure are:
1. Lackadaisical altitude to the business when it been so stressful.
2. Poor experience of business in this case when you don't have experience in what you are selling you will totally fail.
3. Poor management skills by not showing good altitude to your workers they won't be Happy to work soundly for you.
4. In ability to compete with other businesses in town.

 

[Adetayo100]

I think one of the reason why some business fails is because they lack communication strategy, some days ago i was in supermarket to purchase a good so when i was about pay up for all i but, the response of the cashier was what pissed me off, telling me the POS machine isnot working that i need to wait, pay with cash or drop the item bought.
To me communication goes along way in business because through friendly communication you stand the chance to win customers often visitation to you business. And on the other hand customer get there desired satisfaction they needed.
There some client that all what they need is your own motive concerning the service you are rendering to them. when they are given some attention they tend to feel relax and comfortable when speaking with you in any deals or business you are into together.
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I think one of the reason why some business fails is because they lack communication strategy, some days ago i was in supermarket to purchase a good so when i was about pay up for all i but, the response of the cashier was what pissed me off, telling me the POS machine isnot working that i need to wait, pay with cash or drop the item bought.
To me communication goes along way in business because through friendly communication you stand the chance to win customers often visitation to you business. And on the other hand customer get there desired satisfaction they needed.
There some client that all what they need is your own motive concerning the service you are rendering to them. when they are given some attention they tend to feel relax and comfortable when speaking with you in any deals or business you are into together.

Some business are meant to fail because of lack of proper planning and naivety. Some people just go into business without having any knowledge of what they are doing, some dont even seek advice when they are starting up.

 

[Heatman]

The common reasons for business failure are:
1. Lackadaisical altitude to the business when it been so stressful.
2. Poor experience of business in this case when you don't have experience in what you are selling you will totally fail.
3. Poor management skills by not showing good altitude to your workers they won't be Happy to work soundly for you.
4. In ability to compete with other businesses in town.

Some people just go into business because they see other people who are doing well with their own. But in reality, they don't have any zeal for business, and as a result of that, they won't be eager to put all efforts on the business to make it successful.

 

[Psalmsavatar]

In my country Nigeria, the leading causes of business failure may include not knowing how to provide leadership for human and material resources, poor marketing skills, lack of business capital, starting a business 'to make a lot of money' kind of mindset, choosing the wrong location, among many other limiting factors.

 

[Anas Chaudhary]

Failure to market online. In an age where "Google" is a function, if you're not marketing online, you're not selling as much as you could.
Failed to listen to your users. ...
Failure to take advantage of future development.
Failure to adapt (and grow) when the market changes.
Failure to track and measure your marketing efforts.

 

[Eodine]

I have had some good experiences as regards convincing a client, you need not panic as far as your goods and services are of great quality, do make sure to task your employees on correct customer service methods even when it comes to handling aggressive individuals. Market your products to them without hyping or telling lies, most customers love sincerity in business.

Business is supposed to provide one with passive income and while there are high hopes for starting a business, there should be proper planning so as not to diminish hope or fail in the business. Some reasons to fail are picking a wrong partner, starting too early etc

 

[Abelcairo43]

The common reasons for business failure can be lack of planning, lack of decision taking and untruthful person managing the business. business location should be close to urban cities in order for them to get more clients

 

[Sheyemanu]

I agree with you on this topic as you have mentioned a very huge numbet of the major reasons for business failure. Most people fail for lack of business strategies both online and offline, most of them don't want to spend money for marketing. A lot of people just go into business without enough financial education and background

 

[KvngMurphy]

Leadership failure – Alot of businesses fail because of poor leadership. The leadership must be able to make the right decisions most of the time. From financial management to employee management, leadership failures will trickle down to every aspect of your business.

No differentiation – It is not enough to have a great product. You also have to develop a unique value proposition, without you will get lost among the competition. What sets your business apart from the competition?

 

[Praizee]

Lack of funds and capital to raise or continue the business. When there is no money to continue the growth of a business the business can shutdown. Debt for over a long time, also when a business is in debt for a long time and it unable to pay it debt either to the bank or it other company such business can be shut down and might be dangerous to the workers because they will not get paid on

 

[Azhar119]

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; paying fixed and varied overhead expenses, such as rent and utilities; and ensuring that outside vendors are paid on time.

 

[Nabeel119]

However, owners of failing companies are less in tune with how much revenue is generated by sales of products or services. This disconnect leads to funding shortfalls that can quickly put a small business out of operation.

 

[Presh1503]

There are so many reasons why business fail and the most common reasons are
Lack of business planning
Low capital
Inadequate/unqualified staffs and many more
So these things mentioned above allows any business to fail no matter how long the business has started

 

[Princeeffiong]

There are so many reasons why businesses fails. First, when you don't know much about the business just because your friend is doing the business and succeeding does not mean you have to jump into the business. Secondly, you must have good customer relationship.

 

[Josephjossy]

The main reason of business collapse is miss Management. Running a business is something you have to manage very well. You need to be careful how you spend you capital because if you don't manage it very well the business will collapse. You need to have a good business plan. A plan that must guard you business.

 

[Eshaaa]

Why do small businesses fail? Business failure isn't something you want to think about when you start a business. But if you want your business to succeed, you need to know and avoid these 8 common reasons why businesses fail.

 

[Mahnoor]

Ultimately, then, it’s what you didn’t know that caused your business to fail. Moreover, looking at the business landscape from a statistical perspective, most other small businesses failed for that reason too.

Here are 5 common things that many small business owners don’t know that forces them out of business:

 

[Waseem74]

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.