Common Reasons of Business Failure

[tuna89]

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.

 

[GIFTMICHAEL]

The inability of business owner to market their goods and services can pose a great threats to the success of any business.
It is very wrong to spend your profit without investing it back into business to keep making more profit.

 

[LaylaG]

not knowing the sole purpose of your business organisation can lead to business failure because if you don't know the real reason you establish a business you will not be able to meet the needs and demands of people who will come to do business with you ,that is why it is always better to know your goal and responsibility as a business organisation

 

[Nurudeen]

One of the major reasons why people fail in business and Investment is that they don't really value Business plan if you don't know how to prepare a business plan for a business the business might likely fail in the long run if a proper feasibility study is not conducted

 

[Hammad1245]

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.

Yes you are right. The strategy and capital are the main things in business. A business on large scale has a proper management system whereas small size business lack this feature.

 

[Abbas ali]

it is true that every business has a risk of failure. the most common reason for business failure is lack of knowledge. a businessman does not know the information to prevent their risk. their funding is so cheap and their managemen

Yes you are right. The strategy and capital are the main things in business. A business on large scale has a proper management system whereas small size business lack this feature.

Some business also lack this . I don't know more about it

 

[Taimoor Jutt]

Yes absolutely right. These are somr reasons of failure of any business. Lack of experience, overconfidence, lack of concentration leads to failure in any business. Some do not know how to convince and treat to customers, and some don't know how to treat their own employee. Some rude managers causes this type of failure too.
Patience is the key and don't Rush in any business/investment.

 

[Emma Aneni]

Business failure is linked to when you spend above the business means, that is, when you spend business money more than the profit that the business generates and you have no means of replacing it.

 

[Abbas ali]

Some business also lack this . I don't know more about it

I have no experience of large business

 

[Nicklas22]

Lack of planning is when you ignore the value of planning and don’t bother to learn the methodology of planning. A good plan should include both short- and long-term goals as well as a way to measure goals and results. It should also have clear to-do lists, benchmarks, and milestones.

 

[joy101]

The reason why some business fail because of lack of planning, without good planning in a business can bring failure in a business, some people go into business without proper planning, is good to have a good relationship your customers.

 

[Sariana23]

You have written an excellent exposition of three important reasons for business failure, it could also include the lack of management knowledge which leads to wasting the capital and profits of the company, another reason is the absence of good marketing both online and outside. she. What will attract more customers to the company.

 

[Hdre3m3n]

The common reason for business failure are the following;

A business may not know how to attend to customers ,that is how an enterprises usually attend to customers.

A business may not know how to ascertain it's financial report at the end of each trading period.

 

[Psalmsavatar]

To safeguard a new or established business, it is necessary to understand what can lead to business failure and how each obstacle can be managed or avoided altogether. 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.

 

[Abibatabosede]

Failure in business could be as a result of many factors. It could the problem from employees, the owner of the business and inability to satisfy customers need or bad customer representative attendance staff.

 

[Khezo]

The reason for business failure most times Is improper planning which should be the basics of most business. So one should make sure there is proper planning before you venture into business

 

[chicnthin]

The common reason for me is the lack of capital and sales. Some businesses try to make it survive by taking loans, but it will only make them in debt should they have failed to pay it. Another thing is ineffective strategies and mismanagement.

 

[Thosynho]

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.

As part of the common reasons for business failure is many entrepreneur don't sacrifice the required time needed to grow the business. A newly established business requires quality time to grow it

 

[Eyiteepraise]

Many business failure businesses are facing nowadays are due to the following reasons:

Many business don't have trust worthy employee to take care of their record.

Many business usually have failure in their workings because they don't have enough working capital for their day to day activities.

 

[Shayo]

There are several reasons why a business may fail, but the most common ones I've noticed or read about are:
Poor management skills, most businesses do not implement right attitude towards their staffs and customers and this may affect the business negatively.
Inability to compete with other similar businesses, when a business remains stagnant with no improvement to meet up with the others, the business is likely to fail.
Lastly, insufficient marketing.