Common Reasons of Business Failure

[WhiteHouse]

Numerous business fizzle in light of the fact that their plan of action is 'dead on arrival'. That is, they haven't found a difficult that enough individuals need to tackle, their answer doesn't take care of the issue in a convincing manner or they have not coordinated the offer to the assumptions for the market they are focusing on. Achievement in business is based on selling an answer coordinated consummately to an obviously characterized issue that is capable by a monetarily practical market for which you have a demonstrated plan of action with fitting assets and is executed by a fit group.

 

[iamgroot]

WRONG PRODUCT, LOCATION AND PLACE; When doing business, it is very important that you study the PRODUCT, PLACE and LOCATION where your store or office will be located. Herein lies the future of the business you will build. Let's remember that the product is the one that will bring success to your business. It is important that it is timely, useful and what people are looking for. If your product is among the products that are obsolete or lacking in people's livelihood, it will definitely fall apart. There are those who do business because what is the only product to think about, even if it is not profitable, so their company suddenly closes.

 

[Onachukwu]

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.

 

[Emmanuella]

There are so many reasons why businesses fail, and therefore should be taken seriously. One of such reasons is poor advertisement. A business person whose business is a priority takes it upon himself to advertise his business through various means in order to reach as many people as he can.
Second reason is lack of self discipline. You need to discipline yourself if you really want your business to grow, minimize spendings and other activities that could rob you off your time

 

[marky]

I Business disappointment is connected to when you spend over the business implies, that is, the point at which you go through business cash rather than the benefit that the business produces. At the point when one over spends the benefit, one is possibly holding down the business development yet when one deeps hand into business cash (capital) at that point that will prompt the collapsing of the business.

 

[Kiko]

Why do most businesses fail? If you're an entrepreneur who's knee-deep in the trenches battling it out, or you're simply someone looking to enter the startup fray, then the looming prospect of failure is ever-present and always there to catch you when you're slipping. Failure to deliver real value.
At the heart of any business is value. The world's most successful businesses deliver the most value. Plain and simple. Find a way that you can under-promise but over-deliver. Always over-deliver.

 

[Tollytee]

There are so many reason for a business failure but the common one is bad customer relation...how you relate to your customers matter a lot and apart from that your product must be genuine.

 

[Setho]

No matter how good we think we are or is doing this business thing it all boils down to some factors that can bring us down.
Some people fail to do their market and field research before investing or starting their business. They tend to invest because they have seen people do it and are successful.
Some people do not have the good inter personal and communication skills that are needed to win over clients.
Some people have poor customer service delivery and can't handle small increase in orders.

 

[Alogakho Esson]

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.

Reasons for business failure from aspect of government is the policy at hand example when Nigeria band importation of rice and yet it cannot meet up demand of the masses

 

[jimmann247]

You are right, if you don't know how to handle client and market yourself, you may not make it.. Negligence is another key factor that kills business, you ignore important things in your business, you drive away few client thinking that will not affect your business.

 

[Kingsley]

The common reasons for business failures are so numerous, they sometimes look small sometimes but in reality they can be very catastrophic, the first I will highlight has to do with inconsistencies, inconsistency has show to be a major killer of business, I will also consider poor accounting records this will damage the business life entirely. And then we might also consider insincerity.

 

[Oche Diligence]

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. But Change is a constant, so it can be dangerous to grow complacent. Even if things are going well with your business at the moment, being unprepared or unwilling to adjust can be dangerous. Regularly looking to improve your processes, tweak your business model, and innovate your product or services all help you prepare for future success.

 

[Bholozy]

There are many reasons for business failure but the biggest challenge a business have is government policy. Some government policy like high tax rate will not allow small business to grow and a business cannot exist in an unfavorable environment. Though your points are valid but I believe they are secondary and businesses can get better in that with time once there are favorable environment

 

[Adeyoola7]

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

 

[Abigael]

I think one of the main causes of business failure is lack of initial planning. A business needs to be planned well before getting started. You need to know the exact amount of capital needed and how to spend it, your target market and how to impress them and how the business will be managed. If all this is not planned, the business will fail.

 

[Ub40]

There are actually so many businesses that have failed today due to one reason or another. Some of the reasons for business failure are;
1. Lack of capital or finding
2. Faulty infrastructure or business model.
3. Unsuccessful marketing initiative.
4. Retaining an inadequate management team
5. Failure to track and measure marketing efforts.
6. Refusal to listen to customers.
7. Failure to market online as we are a digital age. Not selling online can reduce sales volume.
And so many other causes.

 

[Onachukwu]

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

 

[Jlife]

managing department and financial department in a business are the most important thing in any business or organisation in this world a situation in which both of this department are not doing their responsibility as they should do then there is 80% possibility that such a business will collapse
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managing department and financial department in a business are the most important thing in any business or organisation in this world a situation in which both of this department are not doing their responsibility as they should do then there is 80% possibility that such a business will collapse

 

[Ebuka Stephen]

other reasons why most business may fail is due to lack of focus and perseverance , most business owners lack this values but the truth is most people success stories are from their focus and perseverance. Well another thing is poor decision making, most people make this mistakes that could have bad effects on their business.

 

[redpogi16]

There is so many reason why businness is going failure some of these are including a lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives.