Reason why many business fails.

[Fashow]

There are many reasons that can make a business to fail. Some of them are but not limited to; lack of business planing, wrong business location, lack of business knowledge, inadequate financial power, and government policy.
1. Lack of business planing; As the popular saying that he who fails to plan plan to fail. Therefore, many businesses fail because of lack of proper business planing.
2. Lack of business knowledge; many rush into a business simply because they have seen others engaging in it or because they wish to engage in any available business without having any or little knowledge about the business.
3. Inadequate Capital; Some have proper business planing, and also have the required business knowledge but don't have enough financial muscle to push the business further.
4. Government policy; many have all it takes to make there business florist but bad government policy has crumbles many businesses. Such has double Taxation, High Tariffs charges on business, etc.

 

[Caramelle]

Starting a business in which one has zero to little knowledge can be costly because it will usually go through cycles of trials and errors. The financial cost of mistakes might be too much for a new business to absorb. Thus, a future business owner should make a careful study of a business idea no matter how attractive it would seem from other people's perspectives. Running a business itself requires the right skills, aptitude, and attitude in addition to adequate capital. Capital is not the sole determinant of the success of a business.

Planning is an important business activity for companies seeking to achieve success and longevity. A new business needs to engage in strategic and tactical planning in order to identify its long-term and short-term objectives and determine the actions, campaigns, and activities that will help the business achieve its objectives. Stable and growing businesses need planning to help them maintain or achieve competitive advantages. Successful businesses take planning seriously and usually conduct, at the minimum, annual planning activities at all levels and for all business functions.​

 

[Abee111]

The reason why so many business fail is that so many people don't have much experience on such business before commencing or starting the business, but nevertheless, others may have the experience and yet will fail to perform sometimes due to their behaviours either how to manage the business or in terms of relationship with workers or customers. Furthermore, personal intellect with lack of moral attitude has been the main constraint why firms/businesses fail to perform.
And secondly, what is to be considered in business that mostly fail is the location of the business, the product being produced or sell in the area, also people living in the area are also put into consideration. They product produce or that are being sold there may not be the demand product of the community, therefore the business will just be there without generating any profit to the owner of the firm, and the owner will begins to loss hope on the business.

 

[Kingsley]

Somany people get involved in a particular type of business because they saw other people doing that type of business, this is indeed a very big error. Some also venture into businesses they heard from other people without making proper research. I have heard people screen of that people are making millions in crypto currency trading, but in the real sense of it, if you dive into it because of hear say, I tell you the truth you may get your fingers burnt. And some people have made this very big error and have learnt their in a very hard way and they were shown the road out of the market.

The major reason why people fail most times in business is inadequate background knowledge of the type of busienss that they intend to venture into, this is what truly makes the difference. Learn the trade first before starting .

Again some people venture into business with inadequate capital and for that reason the business begins to suffer from inadequate funding and hence they begin to borrow from other sources and one way or the other the business begins to pay off debt from both it profit and capitals and then the business begins to die.

 

[Chibson]

There are people that have good business ideas but they do not have enough capital to start such a business and there are some that have enough capital to start a business but I do not have good business ideas. Any of these scenarios can actually lead to business failure. There a lot of things that makes people not to succeed in business is and one of the major factor is not planning very well before venturing into a business. Some people just get money and immediately venture into a business without making much plan. Such things can actually lead to business failure no matter how much money you have at hand. proper planning is very important for any business man that really wants to succeed. If you have money to venture into a business and you don't have proper plan then it is advisable you meet people that are already successful in business to mentor you and give you a clear-cut idea of how to be successful in such a business instead of just trying to succeed on your own. Some other things that can affect the growth of businesses are government policies and unfavorable environment. In a country where by the government does not have friendly policies for businesses, many businesses would actually not succeed in our country.

 

[funmi]

None of what you have said above is wrong. As there are so many factors that can make a business to fail. Some businesses has already failed even before it started.
It all depends on the person who is managing the business. One of the factors that I know is not being consistent about the business. If the business man or woman is not consistent in doing the business, this can lead to the failure of the business.
Another factor is persistency in business. It is wrong for a business owner to give up on the business when things are not working fine at a particular time or period.
Business always have its down time and up time. We should try our best to be persistent in business. With that, things will later change as time goes on if we did not give up.