Common Reasons of Business Failure

[Joyemmanuel]

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.

I agree to that totally and I will also love to add two other factors which include -> 1) relationship with customers : this is how you treat your customer and if they will come bk to patronize you.
2)Management of funds: this involves how you can manage your business funds and not misuse it.

 

[M Amin]

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.

If you are doing a business it is compulsory for you to set a target the target could be monthly weekly or daily basis if you have not started any targets yet you cannot check your business is growing or not so this is also a reason of failure.

 

[Kehinde]

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.

 

[Profuk57]

To identify common reason for business failure is not an easy task but there are some things to consider when businesses fail
1. location in which the business is situated can be one of the reason or another reason to be in your business if you do not have a good idea of the business you are into will make your businesses fail.

 

[Abbas ali]

I agree to that totally and I will also love to add two other factors which include -> 1) relationship with customers : this is how you treat your customer and if they will come bk to patronize you.
2)Management of funds: this involves how you can manage your business funds and not misuse it.

I also agree with these factors

 

[Ibrahim1]

Common reasons for business failure is lack of organization and strategy also plans because if any business man doesn't think or have this things I swear the business going to fail and fall because such person lack all this things and it's really going to affect such business

 

[Hasan Raza]

Definitely you shared good points and some more points are here. First one is that when you fail to understand the market and your customers. Second one is opening business in an industry which is not profitable. Failure to understand and communicate with your sellings.

 

[btaliat]

There are many reasons why business may fail as the poster has highlighted. Among the reasons is lack of proper planning. Also a business can also fail if it is not managed by a competent and qualified personnel. Or if all the right attitudes are not respected.

 

[Zamaney]

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.

 

[Smithkid]

Common reason for business failure is that where there is lack of capital, we there is no much money to invest in that business it will result to business failure also it comes as a result of recession,high taxation,high interest rate,lack of environment can lead to lack of business failure.

 

[Nabeel119]

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.

 

[Sotherefore]

I believe most of the reason for business failure is that the manager or the managing department of the organisation has failed to recognise their responsibility as manager and maybe the marketing system of a particular company has also failed the system, because these are the things that makes a business to collapse.

 

[Adetayo100]

The most common reasons small businesses fail include a lack of funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing strategies and bad advertisements.

 

[EMMANUEL]

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.

 

[Ebensco]

Business failure is linked to when you spend above the business means, that is, when you spend business money instead of the profit that the business generates. When one over spends the profit, one is only holding down the business growth but when one deeps hand into business money (capital) then that will lead to the folding of the business.

 

[Seyesystem]

Business failure could be caused by so many reasons, it may be lack of effective communication between the organisation and the customers. It may be due to less quality products, it may also be by high price of the business products,it may also be lack of business pans and proper implementation of the business plan and I could be due to high competitors in it business environment. Lastly lack innovation may lead to business failure a business owner must be dynamic in doing his business.

 

[kayode10]

There are lots of reasons why business fails. Here are some of the once I know

1 lack of required capital to make the business run smoothly.

2 no unique selling proposition developed for the business.

3 little or no marketing strategy put in place.

4 low quality product design which may cause the customer to reject it right off the bat.

5 having a bad employee who steals from the company resources.

 

[RETIRED SINNER]

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.

Unseriousness in the part of the owner can make a business to fell, anyone who is ready for business must remove all unseriousness a other is extravagant spending mend spend money to the extent they even put hand in dia business money with will only be a set back for them

 

[Tinaconcept]

Capital and funding can be a reason why a business might fail because after establishment there need to be constant funding for maintenance of the business. Another factor is manner of approach the way you attend to your customers matters a lot it might bring more customers or chase existing ones away.

 

[Bilal0087]

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.

You have listed all the reasons that are responsible for business failure.
I want to clarify the concept of marketing and satisfaction of clients.
The advertisement play key role for attraction of clients, because without clients no business is successful.
The satisfaction of customers is a key component for keep running business well.