Reasons why people fail in business

[Deleted member 27583]

A lot of businesses failed not because the capital wasn’t huge enough, but that other forces militated against it. The followings are reasons why businesses fail:

• Lack of passion and drive
• Not having a good business plan in place. A business need a good plan and to be well executed too
• Starting a business with no pre-knowledge of what it entails
• Lack of effective communication and advertisement
• Siting the business in a wrong location
• Not competing favorable with your competitors
• Lacking in interpersonal skills: Relating badly with others in the business
• Bad attitude and treating customers with disdain.: Without customers, the business will die naturally

I concur with you, some business owner need to attend business school before starting up there business ...But they won't because they have the capital so they belief they can venture into any business they feel like without no proper idea of the business ....So at the end the run into lost ....So anyone going into a business should have proper orientation before it start ... Thats my take on this

 

[Teatea]

One of the reasons people fail in business is because they go into business because of the wrong reasons. They are driven by the wrong things and so they end up making mistakes that would cost them.
Another reason is setting unrealistic goals, some entrepreneurs set targets that are impossible to achieve in a short period of time and they go in the wrong direction just to meet up the targets.

 

[Deleted member 28873]

the reasons why people fail in business ?I really think what make people fail in anything including business is improper planning,when you don't make proper success plan you plan to fail thou there are other causes like Lack of experience and adequate knowledge.
2. Inadequate and unskilled Labour.
3. Low demand of a product compared to supply.
4. Poor infrastructure i.e roads and communications.
5. Poor government policies.
6. High taxes.
7. High competition from other businesses.It is not advisable to enter any business ignorantly.trying to make huge profits is also a reason why most people fail. am a believer of the amount of effort you applied towards something is proportional to the result received

 

[MarieArie]

@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.
Lack of capital of funding takes the lead in this case as most businesses cannot survive with little capital. In other to solve the the problem of financing, seeking loans from friends, relative and financial institutions are the options available to many entrepreneurs.

@Maven Tiger, I am still hell-bent that when risks are put into consideration before the startup of any business, failures would be reduced to a minimal point. Yes, so many factors could lead to business failure; these may include financial risk, management risk, or improper planning. If you have a business idea and you know quite well that you can't document or predict certain things, I would rather you employed a business expert, who can help you finetune your ideas.

 

[Aniwhyte]

People fail in business based on a lot of reasons, from not having a concrete business plan, not having enough capital before starting up your business. Collecting loans to start up a business and not been able to pay back when the time is up, not being determined and lack of focus, selling on credit to customers and in return not getting your money back.

 

[Lekhraj19]

Business is something that you can't be rushing and be quick to go with it. You mentioned very good points and covered almost all those points that lead to failure of businesses. The most I can relate to is the reason of not having effective communication and this is a major shortcoming, I felt. Because, to know the demand of the market we need to talk to the persons around.

 

[Janiya]

I have seen that most of the people dream to start business but not small business they are dreaming on a very high level they just want to start a business but it must be here big and large business this is the first mistake that the field because there is advantage of starting small business in the beginning there we get the idea that can we start the business can we run the business can we hold the management or do we survive for everything they are some major key points which is necessary to keep in mind so there is a advantage to start small business with great and proper planning most of the people always think that they will start a business but they not planned even a single thing that what will they do with the business how much the capital will required I have seen that most of the people dream to start business but not small business they are dreaming on a very high level They just want to start a business but it must be a big and large business This is the first mistake that they feel Because there is a advantage of starting small business in the beginning There we get the idea that can we start the business Can we run the business Can we hold the management or do we survive for everything There are some major key points which is necessary to keep in mind So there is a advantage to start small business with great and proper planning most of the people always think that they will start a business birthday not plan even a single thing that what will they do with the business How much the capital will require in the business we are starting How much we have to invest there There are some things that we have to keep in mind that we will make yourself able to face challenges we have to take risk without taking risk task we cannot get success we have to make a self and mutual to gain and loss in life which is a part of business without this we cannot even move more without taking risk task we cannot get success We have to make herself habitual to gain and loss and life which is a part of business without this we can not even move more so these are the reason which are we are not considering and going more without knowledge and experiences these things damage the business and fall to fail.

 

[Maven Tiger]

@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.
Lack of capital of funding takes the lead in this case as most businesses cannot survive with little capital. In other to solve the the problem of financing, seeking loans from friends, relative and financial institutions are the options available to many entrepreneurs.

 

[Sammyesx]

Reason for business failure ranges from several reasons when people fail in there business they become so angry, they start to contemplate sever factors that resulted in their failure, there are several reasons I believe that causes business failures
* ignorance : most time the reason why people fail in a business is as a result of what they don't know they don't know
*being comfortable : a business is a competition, being comfortable will in no time lead to failure
*lack of planning

• lack of leadership skill
• lack of people management skill, etc.

 

[Mataracy]

People fail in business because they don't really know anything about the business they wnt to start and most of them will refuse to ask from those that know something about it.
Before you enter in to any business you need to take research about the business. Look at the environment ment you want to put your business.
You have to know the techniques you want to use to gain the attention of the customer and if all these is not there then failure is in evitable.

 

[Olajidey]

You already state all what makes a business fail and I can say you are right with all what you said. The reason why people fail in business is that the thing is determination and consistency in business there are sometimes that you will face some challenges in business but if you are determined to succeed you will always bounce back stronger anytime you encounter challenges. You also need a good business plan for any business and backup plans in case things go south in business.

 

[Augusta]

A lot of businesses failed not because the capital wasn’t huge enough, but that other forces militated against it. The followings are reasons why businesses fail:

• Lack of passion and drive
• Not having a good business plan in place. A business need a good plan and to be well executed too
• Starting a business with no pre-knowledge of what it entails
• Lack of effective communication and advertisement
• Siting the business in a wrong location
• Not competing favorable with your competitors
• Lacking in interpersonal skills: Relating badly with others in the business
• Bad attitude and treating customers with disdain.: Without customers, the business will die naturally

 

[Prettybabe]

There are a whole lot of reasons why businesses fail. Most businesses tend to fail within the first three years. If they are able to stand those early years, I believe things should improve from there.

Now, I want to believe that no one will just go into business without some knowledge about the business or at least some planning. Itsy just that people have no fall back options. By fall back options, I mean what to do if the business does not go as planned.

If a business person has taken into consideration all or most of the points listed by the poster and other commenters and they still does not succeed, they should learn from their mistakes and get back up.

 

[Alexandoy]

One of the most important in your list is the lack of business plan. That is a common mistake of entrepreneurs that I know. They fail because they did not foresee the so called potential problems and they do not know the contingent action. When I was my retailing business of computer supplies, a friend was pirating our major clients that really surprised me. I was not prepared for that so I didn’t know what contingent action to make. Looking back I should have confronted that friend and brought him to court.

 

[Seyesystem]

owner that fail to plan his business very well will surely fail. Before going into any business you must do your through findings which includes feasibility studies about the business whether it's viable or not, also the profit projection for at least 3 years must be done. This will enable the entrepreneur to make his decision whether to start the business or not.

 

[Kennysplash]

A lot of businesses failed not because the capital wasn’t huge enough, but that other forces militated against it. The followings are reasons why businesses fail:

• Lack of passion and drive
• Not having a good business plan in place. A business need a good plan and to be well executed too
• Starting a business with no pre-knowledge of what it entails
• Lack of effective communication and advertisement
• Siting the business in a wrong location
• Not competing favorable with your competitors
• Lacking in interpersonal skills: Relating badly with others in the business
• Bad attitude and treating customers with disdain.: Without customers, the business will die naturally

1 – Lack of planning – Businesses fail because of the lack of short-term and long-term planning. Your plan should include where your business will be in the next few months to the next few years. Include measurable goals and results. The right plan will include specific things to do, with dates and deadlines. Failure to plan will damage your business.
2 – Leadership failure – Businesses fail because of poor leadership. The leadership must be able to make the right decisions most of the time. From financial management to employee management, leadership failures will trickle down to every aspect of your business. The most successful entrepreneurs learn, study, and reach out to mentors to improve their leadership skills.
3 – No differentiation – It is not enough to have a great product. You also have to develop a unique value proposition, without you will get lost among the competition. What sets your business apart from the competition? What makes your business unique? It is important that you understand what your competitors do better than you. If fail to differentiate, you will fail to build a brand.

 

[Josemendez]

The fact is that some people rush in to starting a business without preparing very well for it. they think it is just a question of starting a business just for the sake of making money from it.

prior to starting a business , there should be first a detailed planning analyse in a business feasibility plan .This is the first step ,once the plan shows how feasible the business will be , one can then begin to work towards establishing the business.

Perseverance is another reason why people fail in their business . some people thinks that business should be profitable at a shorter interval ,but this is not always the case , and at times they give up easily because of this

 

[Ahmedo24]

Here are some of the things that contribute to failure in various businesses.

1. Lack of experience and adequate knowledge.
2. Inadequate and unskilled Labour.
3. Low demand of a product compared to supply.
4. Poor infrastructure i.e roads and communications.
5. Poor government policies.
6. High taxes.
7. High competition from other businesses.
8. Lack of security.
9. Rising of pandemics e.g diseases like Corona
10. Poor decision making.
11. Lack of accountability.
12. Poor management of the business.
13. Poor handling of funds.
14. Poor or lack of modes of advertisement.
15. Poor location of the business.
16. Lack of capital to grow and expand.
17. Not enough space to expand the business.
18. Production of similar goods in the locality.
19. Poor timing and not being flexible.
20. Engaging in high risks business without calculating the risks involved.

The above are some more reasons that can contribute to a failure of a business once taken care of a business it hard to fail or collapse.

They are not some but major reasons which could make business fail because it could be very difficult for a failed business not to be caused by either of the factors mentioned here .
If we are to look at these factors critically they are categorised in to three factors which are Government factors such as polices of high taxes poor road infrastructure and the likes .
Environmental factors such security , competitiveness, availability of labour.
Human or personal factors which are the most from the list of likely causes you made mentioned of

 

[Augusta]

Here are some of the things that contribute to failure in various businesses.

1. Lack of experience and adequate knowledge.
2. Inadequate and unskilled Labour.
3. Low demand of a product compared to supply.
4. Poor infrastructure i.e roads and communications.
5. Poor government policies.
6. High taxes.
7. High competition from other businesses.
8. Lack of security.
9. Rising of pandemics e.g diseases like Corona
10. Poor decision making.
11. Lack of accountability.
12. Poor management of the business.
13. Poor handling of funds.
14. Poor or lack of modes of advertisement.
15. Poor location of the business.
16. Lack of capital to grow and expand.
17. Not enough space to expand the business.
18. Production of similar goods in the locality.
19. Poor timing and not being flexible.
20. Engaging in high risks business without calculating the risks involved.

The above are some more reasons that can contribute to a failure of a business once taken care of a business it hard to fail or collapse.

Yeah it looks there are so much reasons why people are bound to fail in business and these must be taken seriously if people really want to progress. It can really be daunting when a huge capital is thrown into a business and it never worked out. Maybe it high time that people when planning for a business also make provision for bringing in business experts it will help nurture the business to grow before letting it off. It will really be helpful for a business.

 

[Ephy]

Here are some of the things that contribute to failure in various businesses.

1. Lack of experience and adequate knowledge.
2. Inadequate and unskilled Labour.
3. Low demand of a product compared to supply.
4. Poor infrastructure i.e roads and communications.
5. Poor government policies.
6. High taxes.
7. High competition from other businesses.
8. Lack of security.
9. Rising of pandemics e.g diseases like Corona
10. Poor decision making.
11. Lack of accountability.
12. Poor management of the business.
13. Poor handling of funds.
14. Poor or lack of modes of advertisement.
15. Poor location of the business.
16. Lack of capital to grow and expand.
17. Not enough space to expand the business.
18. Production of similar goods in the locality.
19. Poor timing and not being flexible.
20. Engaging in high risks business without calculating the risks involved.

The above are some more reasons that can contribute to a failure of a business once taken care of a business it hard to fail or collapse.