Common Reasons of Business Failure

[Lordfalcao]

Some of the common reason or factors of failure in business have to be as a result of poor maintenance lact of utilization of available resources.

 

[Trexxxy]

True, I think you have made a good list. A lot of cogent points have been made. Also when you can't seem to keep your hands away from the business funds. It will only lead to failure.

 

[kay169]

I personally think the reason for the downfall of most businesses is due to the inability for the owners to maintain their business and also heavy loans that can lead to bankruptcy

 

[Snazzy001]

The common reasons for business failure could be traced back to lack of business plans and the pride in some people to learn from those who are experienced enough

 

[Kane]

High expectations can also cause a business to fail. If you have expectations, you tend to do a lot of silly things like launching too many products, spending a lot of money in advertising, overpaying staff, etc. Things like these will increase your business operational cost.

 

[Richard92]

Businesses failure comes as a result 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 the business's offerings. Some businesses may choose to shut down prior to an expected failure. Others may continue to operate until they are forced out by a court order, and for small business ,lack of experience Un-trusted sales representative ,insufficient capital,mismanagement of fund, inability to recover from a major business interruption ; competitors .

The different reasons why business fail but one basic reason why business fail is lack of enough capital or inability to manage the company's finance and human resource.

 

[Kelly5]

Some business owners and start ups don't know how to actually lead in their business dealings. They don't have the leadership quality needed to make the business run smoothly

 

[Adam13]

One of the commonest reasons for business failure is lack of proper knowledge and lack of planning. There's something that I noticed recently about people and where live investing in cryptocurrencies without them having the proper knowledge about it and they end up putting their money in the bin. There has to be a step-by-step way towards achieving goals in any Walk of Life you don't just do things. Self-discipline and self-control it's also a very important Factor and value to cultivate in the process of starting up a business.

 

[Chizfab]

Here are my own list of reasons for business failure, gotten out of mine and other people's experience; very poor customer services, low employee attitude towards work ( which is your fault), lack of running capital, no marketing strategy and plan, lack of creativity and innovativness in your team and many others.

 

[Thinker009]

I think most business usually fail , since the owner of the business does not know how to manage the business effectively and make it more productive and certain I think

 

[eLdavis]

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.

This is wonderful, what you said is actually the truth. Many business owners do not want to learn from others, they feel they have gotten all the knowledge they need, forgetting that learning is a process that never ends

 

[Bamphilip]

No business plan or poor planning.Failure to understand customer behavior today.nventory mismanagement.Unsustainable growth.ack of sales.

 

[mcjerry]

That is why in any business we must learn how to attend to customers. Because it is very important. Some business have failed because they can not attend to customers well

 

[Immilash]

Write your reply...common business failure
there are many reasons why many people failed in there business ,and also depending on the type of person you are and the kind of business your into,i can say many business individual fails because of lack of having the business idea and how to go about it

 

[jeff87]

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.

Thanks for this enlightening information. I agree with three common reasons why businesses fail which are they do not know how to win over clients, do not know how leadership can be given and do not know how to market themselves.

 

[Mayox25]

The number of businesses that have failed is more than the successful ones, some of the reasons are inadequate capital, infrastructure deficiency like power,roads which inturn increase overhead, government policies and many others.

 

[skyliequiz]

“Failing to plan is intending to fail,” as the cliche goes. Simply said, long-term planning is critical to any company's success. A business owner must do market research to determine who their consumers are and what they require while planning the expansion of their company.

 

[Ralphjoe]

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.

Well in as much as I agree with you that lack of capital is one of the most common reasons why businesses fails but as far as I am concerned but the greatest reasons why businesses failed is as a result of lack of knowledge of the business.

 

[Good-Person]

One of the biggest reasons a busines fail is a lack of funds, as many people are not able to arrange opr manage funds in order to run the business smoothly and the business closes eventually.

 

[Emmy]

Another point of failure in business is when a business fails to have good relationship with clients and employees. This is the most common cause nowadays. The owner of the business must be very amiable, polite and considerate.