Reasons Why Businesses Fail

  

Date Posted: 2/20/2018 2:19:12 AM

Posted By: ROZA  Membership Level: Silver  Total Points: 961

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Most of the businesses that are started do not last for very long. This is because many business owners make several mistakes that lead to their businesses falling apart. The following are reasons that lead to business failure:

1. Lack of Capacity

Lack of capacity means that the business owner does not have the necessary skills and abilities required to run his business. It is very important to understand that zeal alone cannot make a business successful.

2. Lack of Passion

Most people start up a business just because they saw a friend who has succeeded well in their business but they do not ask themselves the question, ‘is this really my passion?’. A person who has passion will have the zeal that is needed in order to go on even when things are not looking so good.

3. Lack of a Business Plan

A business plan is meant for planning ahead, before venturing into a business. Someone once said that not planning at all is planning to fail. Well, whoever he is, he was right. A business plan is like a strategy that one plans to follow in order to reach a certain destination, in this case the destination is the success of the business. So it acts as a guide in that journey whose destination is a successful business.

4. Being Irresponsible

An irresponsible person thinks that things will be okay even if they don’t take up their responsibilities. They don’t know that even if they have skills or maybe they are talented, they have to be responsible so as to succeed. Truth is there are things they have to work on so as to sharpen their skills and reach where they intend to go. This irresponsibility makes them lose opportunities and resources leading to the downfall of their business.

5. Lack of Business Marketing

Many people

do not see the need for marketing their business because they think of only advertising in the media which is very expensive. Small scale businesses can make their business be recognized through word of mouth or even simple posters. One can put posters outside their business premises or even inside, so when one customer comes for a specific product or service they will be aware of others that they were not aware of, so the next time they come they will come for another product, and they will tell their friends about it. One would be surprised at how simple marketing would promote their business, and this will keep a business from downfall.

6. Lack of Faithful Employees

This is one of the major causes of many businesses’ downfall nowadays. It seems that these days it is very hard for good and faithful employees to be found. They steal from businesses and this may lead to the collapse of a business, it does not matter how big it is, and this is something we have witnessed.

In conclusion, from the above one can decide not to learn from experience but take the necessary precautions and keep businesses from falling apart, but instead reach the goals that had been set when starting them.

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