Common Reasons of Business Failure

[Ziki]

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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 really agree with the first point because somehow, I have failed in a certain business because I failed to win client. At the long run I gave up on the business.

 

[Setho]

From what I have seen, a lot of business failures can actually be traced back to even before the business started. A lot of businesses do not make sufficient research before starting a out and some people only join because of the fear of missing out.

 

[Patrik]

there are actually more than 3 reasons that can be behind the failure of a specific business, the best thing that can be done to prevent these scenarios is by the good planning and expecting every single possible problem that can occur

 

[Ehizzy1]

They might not know how to market their product ,i feel that should be the reason because bad marketing have a lot of bad influence on the business growth and its a issue

 

[Chibson]

There are so many reasons why businesses fail. It is advisable to study and master the kind of business you want to go into to avoid business failure. One of the reasons businesses fail is lack of proper planning. Another reason is lack of financial back up.

 

[Maphalle]

There are many reasons why businesses come to fail.
1. Stealing and using someone's idea to set up a business.
2. Lack of finance
3. Lack of proper planning.
4. Retaining of inadequate management team.
5. A faulty infrastructure and
6. Unsuccessful marketing initiatives.

 

[Kunkun]

There are so many reasons why a business could fail, it could be down to lack of funds or lack of proper and effective management. Also poor customer relations can drive a business down since customers are the engine with which every business runs

 

[Setho]

One of the common reasons why people fail in business is sometimes lack or inappropriate customer service and they do not know that is very important in business.

 

[Chibson]

There are countless reasons why businesses fail and most of them is not far-fetched. Lack of proper knowledge about the kind of business you are venturing into my definitely need to a gross failure.

 

[Razor1911]

One of the common reasons why people fail in business is sometimes lack or inappropriate customer service and they do not know that is very important in business.

That is also a good reason of failure. When we deal with customers directly, we need to listen to their concerns and solve them immediately. Customer satisfaction should be always held at top position. In order to attract more customers in future, customer needs to be fully satisfied with customer service.

 

[Eodine]

True, all these listed points are reasons that could lead to a business failure but I feel that these factors are due to lack of planning of the company owners to plan effectively.

 

[cowantussie]

Five Common Causes of Business Failure
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.

 

[Setho]

One of the most common reasons why business owners fail Is that they fail to conduct the right research but instead start a business based off on emotions.

 

[Josemendez]

It is one thing to start a business and it is another thing to be able to manage the business in such a way that it will ensure return on money invest in it.

 

[Jlife]

Bad location and luck of understanding of the business are one of the most leading factors that causes business failure, people who engage in business really need a serious time to understand the type of business and what is expected of them.

 

[Senator]

The point where they don't know how to market themselves is also true of some businesses not making it successfully. You don't only market to your products, out must also take every opportunity to market yourself ai well

 

[Chibson]

There are several reasons for business failure and some business owners tend to ignore some of this by the reasons. Some of the reasons is lack of focus.

 

[Psalmseen]

There are lots of reasons for business failure..a business may fail due to lack of commitment. And a business can as well fail when there's no proper planning or business plan to serve as blue print

 

[eLdavis]

The reason why most business fails, is lack of proper management, which also boils down to leadership. Who ever that is in charge, lack the proper skills to manage not just the company resources but also the workers and clients.

 

[Emmy]

When a owner of a business limit himself /herself to his/her own knowledge may lead to failure in business. A business owner must be a reseacher and love to hear out from those that have experience more than him/her.