Reasons for the failure of many business

[Hagson1]

It has now become one of the things that affect almost very person that is about to go into business. Many people before they go into business they are already thinking of failure, the question usually comes in form of what if I fail, what if people do not patronize my goods. It is estimated that 65 percent of all businesses are not likely to survive the first 10 years after establishment. After some investigation and experimentation I have find some of the reasons why business failed today. This is to give us awareness about they business failed and help us correct it in our own business so that we won't end up with a failed business as well.

1) negative mindset:

Your mindset as an entrepreneur matters a lot, in fact is the most reason why business fail. What is that which you have in mind. What do you have to offer to the community. Therefore of your business to be productive, you have to be positive minded.
2) location:
Location is also very important in setting up a business. The entrepreneur has to know the location he is going to start his business with. Let it not be too for his customer.

 

[btaliat]

It doesn't really make sense to talk about the success of a business without talking about what can make them fail as well. Not because we find delight in talking about failure but for us to know how to prevent the failure when we see the sign.

The first one is failure to plan. It is not s mere saying that anybody that fails to plan has planned to fail. We need adequate plan whenever we want to start a business. There should be preparation on capital, human resources and the necessary information concerning the business to avoid failure.

Wrong location plays a important role in determining business failure. A business owner that has chosen wrong location will definitely fail. Business survives more on the customers. And when there is no customers as a result of wrong location, there is nothing that will save the business from crumbling.

There is need to make mention of treatment of the customers. It is first thing to have the right customers for our business and it is another thing to treat them right. Someone that doesn't have good business relationship with his customers may not be making enough as he's bound to be losing customers on a daily basis.

 

[Kingsley]

Yes I very much agree with you to a very large extent, many business ventures are indeed failing these days basically for personal reasons and general reasons. When I say personal reasons I mean reasons that are associated with the entrepreneur himself or herself, in the area of poor business planning, an poor or weak execution of business plans. Again lack of technical know how on the chosen business area. Then we also have challenges caused as a result of lack of practical experience on the part of the entrepreneur who intends to run the business. Then there is also the problem of poor funding on the parts of the entrepreneur which is making the life of the business very slow.


Then on the general reasons this are reasons beyond the control of the entrepreneurs they are factors that the entrepreneur can not control, they include factors like government policies, this are policies that can affect the growth or advancement of a business concern. Just like when the government placed a ban on the activitiesof TWITTER in my country many were cut out of business and it led to the death of business in my country. And there are things like inflation aswel.

 

[Kendy]

There are a thousand and more reasons for business failure but some I would list the ones I am most familiar with. Business failure can emanate from inadequate funding, when a business is set up, without atleast more than half of the required amount as the capital required or budget needed, it would be very hard for such business to thrive. It would be very good for a business owner to have the required funds to keep the business aloft of impending danger. Mismanagement of funds could also lead to business failure. When a business owner is indisciplined when it comes to funds, the money would be spent unwisely which would stampede the progress of the business. Lack of employees motivation is also one way to business failure. Without the cooperation of the employees, the business would be dwelling on a shaky ground, this means that business owners should always compensate their workers, encourage them and pay them on their due date. Again, business failure can arise from some circumstances beyond the control of the enterpreneur, such like a fire outbreak or a hurricane attack, most especially if the business was not insured. Lastly, business failure could arise from the negative mindset used in starting the business.

 

[Rachael]

There are reasons why business entrepreneurs experience failure in their ventures and lack of motivation is not farfetched from one of the reasons. The act of motivation is a powerful tool that can either work positively or negatively, depending on how it is used. There is no way a business will thrive if it solely built for the maximization of profits. It means that if customers patronage stops or is not booming as before, that the business owner would choose to close down the business. To start a business, you need to be motivated in the business line so yo do not see every small challenge as a heavy weight on your shoulders. You need to look beyond the profits or gain. Another common reason for business failure is pride and lack of customer's satisfaction. Of course, the customers are the foundation and pillar of any business, and once the customers are dissatisfied ad nothing is done to salvage their problems and expectations, the business would have no alternative but sink. Some entrepreneurs are so proud, that they tend to take everything a customer says, or reacts at every negative comment. Some business owner do not want complaint or criticism from the customers or experienced people. They fail to remember that these criticism could be used as a place of opportunity to input more creativity and innovative ideas in the business.

 

[Chibson]

There are many reasons and factors why businesses fail. It is very important that anyone that wants to venture into any business must make proper research and ask a lot of question before he or she go into such a business. this is why it is very important for you to have a business mentor if you really want to succeed in a business because they have been there and they can definitely tell you a very good advise that would help you to achieve your business goals. many people start businesses but along the line they find out that such a business is not prospering and some of the reasons may be due to bad location. when you want to venture into any business especially offline businesses it is very important that you take your time and resources to find very good locations because they can go a long way in helping you achieve success in such a business.
Even if you have a very good business knowledge and understanding and you're not in a good location and then there is a high chance that that business will probably not succeed.
Another major thing that makes businesses to fail is wrong mindset.

 

[SafeInvestments]

I like what the above comment said!!!

 

[TOZZIBLINKZ]

Business owners try to make their business flourish by doing their possible best in managing , controlling , and financing their business . But no matter how hard I try some of them and counter failures as a result of some factors not put into proper consideration . during the initial establishment of a business business owners must put into proper consideration the location of the business . The location of your business clearly determined the potential rate in which your business will be able to satisfy the needs and wants of it customers .

For example , if you want to establish a business that has to do with buying and selling do you must make sure to see that your business is being situated in an area with high population , since as a result of high population you will be able to yield high profit and vice versa . It is although true that not every business need to consider the location in which it is to be situated , businesses that has to do with agricultural activities like planting and rearing of farm animals and crops do not necessarily need to be in an area where population is high . This is because due to the corrosive and offensive odour of most farm animals it need to be situated far away from where people lives .

 

[moonchild]

Businesses fails because they don't understand the underlying economics behind starting a business, which supply and demand, any business that didn't follow this set of rules is bound to fail because you can't violate a law and go free, the repercussions will surely show up.

When starting a business you have to make sure you have a genuine reason to start at first, don't start based on sentiments and because you see other people, assess yourself and your idea and conduct a market research and if to can it you can hire professionals to do it for you. This is just to ensure you have some odds in your favor.

You also need to grind and Hustle like you never before, a trait among small business owners is, they get comfortable and complacent when it comes their businesses, whenever they realize their business is bringing in money and they will just relax and do nothing while maybe a competitor is out there trying to take your spot.

You have to go all out and do whatever it takes to make your business a success, life itself is competitive talk more of business that its sole aim is to compete and get the best out of the market.

 

[Bookwormlux]

There are countless reasons why a lot of businesses tend to fail and do not get to stand the test of time at all and this depends on so many factors that will be too broad to discuss here .
Some of the reasons can be highlighted as,
- Not acquiring enough knowledge about the business before you go about starting it. this is a major mistake that a lot of people make and they just want to go into business because they have seen their friends doing it without bothering to acquire the necessary knowledge.

- Using borrowed money to start a business. This is a silent killer and has been the major reason why a lot of people we are not able to grow their business the way they initially planned to do .
this usually happens when things do not go as planned and then they end up losing out the money they have without realizing there goals.
When this happens, define it difficult to repay the loan and then have to sell off their businesses before settling the loan to avoid disgrace.

- Going into partnership with people who are not trustworthy. This is the main reason why a lot of business fail to and people have to be careful who they partner with.

 

[Sotherefore]

Well I don't know much about negative mindset but I understand that location play a very important role in the success of a business and if the location of our business is perfect the possibility of business success will be high and also the other way around if the location of our business is not good.

Generally it is not just about starting up a business but how we could possibly makes this business to be profitable , That is what will determine the success of every business , An entrepreneurmay have the required money to start up a business but the person also may not be able to arrange the business to achieve maximum success. In a situation like this a business intended person will need a manager for a guidance that will help him or her on the business journey.

It is not always something of a thrilling surprise when you have committed your money into a business then at the end of the day the business is not likely to be successful.

It is just for us to carry out the needed research concerning our area of business because that is just the only way to achieve success in whatever business we are doing.