Causes of failure in business

[Abee111]

Many people who engage themselves in a business but didn't succeed in it, is due to some reasons which are
1. They didn't plan well for the business at first
2. They don't know how to manage the business
3. They don't know how to render service to their customers
4. Starting up a business has a risk attached to it.
In a business if you have never be in one or two risk then check that business something is wrong somewhere.so such people are afraid of risk
5. They don't know how to win customers attention.

 

[IamDozzy]

If am to be asked what the causes of failure in business I would say it probably improper planning,yeah that's part but business failure could be caused by uncontrollably factors like fire accident, drought if it were should be agriculture, I think I got no point cause with proper planning you would involve insurance in your business.This are the major causes of business failureoor cash flow management. You may be sick of being told “cash is king”, but it doesn't change the fact that poor cash flow management can lead to the demise of any business . ...
Losing control of the finances. ...
Bad planning and a lack of strategy. ...
Weak leadership. ...
Overdependence on a few big customers.

I agree with you 100%, improper planning is the cause of most business failure. A lot of people don't realize the fact that failure to plan is planning to fail. A properly planned business would be able to weather any storm that faces the business. Also poor management decisions can be a contributing factor to business failure. In all, business owners must get their acts together and employ all principles of succeeding in a business.

 

[Deleted member 28873]

If am to be asked what the causes of failure in business I would say it probably improper planning,yeah that's part but business failure could be caused by uncontrollably factors like fire accident, drought if it were should be agriculture, I think I got no point cause with proper planning you would involve insurance in your business.This are the major causes of business failureoor cash flow management. You may be sick of being told “cash is king”, but it doesn't change the fact that poor cash flow management can lead to the demise of any business . ...
Losing control of the finances. ...
Bad planning and a lack of strategy. ...
Weak leadership. ...
Overdependence on a few big customers.

 

[Hena101]

There are many reason of failure in business as long as the people involves did not take care and put things in to order as the beginning of the business. Factors like failure to properly designed the business plan, failure to know the target customers to provide their need, cost of production and lot more.

 

[Jasz]

In order to understand how to make your business a success, you have to know the reasons behind why so many businesses fail. Below are some of the most common causes of failure in business:

• Lack of planning: It's impossible to be successful if you don't have a plan.

• Inexperience: Having an inexperienced team when it comes to running a business is another reason so many businesses fail. A lot of people don't realize how much they don't know about running a business until they're in the thick of it.

• Poor management: If you don't have the right people in charge, or if your leaders aren't performing up to par, it's going to tank your business.

• Lack of capital: Many businesses fail because they just don't have enough money to get off the ground or stay afloat.

• Poor location: You can do everything else right, but if your location isn't good for your business, nothing else matters.

• Pricing issues: Maybe you're charging too much or too little—either way, price has a big impact on whether or not customers come through your doors and stay there long-term.

 

[Ramolak19]

Failure in a business can cause with different factors such as

New market survey a business man must be able to research or investigate the customers wants before production

Bad Location: wrong location would also play role, when a customers are finding difficult to locate the company

Lack of self confidence: that is when there is no self-esteem with business owner to tackle any challenges that is facing his business. you might failed but you're not a failure until when you stop trying.

Selection of incorrect materials: can cause failure to the business when a company are using buying quantities products for manufacture.

Incorrect processing or manufacturing putting a wrong staff or worker which could not able to strategize to improve the particular products

Government policy is another issue for instance an importer of a particular products would surely fail immediately a government address to stop the importation of that products, may be government wanted to be producing it a local level maybe because of economy situation.

 

[anil02]

It is better to say that most of business flopped because of bad planning. Before starting any work proper planning and home work is must

 

[Lens1000]

The truth be told , the business failure could be caused by so many things. The aim of every business owner is to ensure the success of the business. Majorly, I the business failure could be when the business isn't making profits. Profits is a yardstick that is used to measure the success rate of a business and that's basically one of the reasons why a business that is making profits could be termed as a failed investment. So, it is very important to ensure that you make some profits if a business is to be regarded as been a successful one.

The number cause of the business failure could be improper business plans. When the business isn't having a very good business plans . It is very likely that the business may fail and that is why one need to put on the table a very good, sound and result oriented business plan. This is the type plans that will put the business on the profit ladder. If the business plan isn't good, or if it's faulty, it will mark the beginning of the business failure. In the same vein, the knowledge on the risk of the business is equally important and that is basically the major reason why the knowledge of risk Management is very important.

 

[Ajebo25]

There maybe many reasons for failure in a business which actually depend that the success of a business depends on the owner of that business it depends on hoe they treat the customers some people are always harsh or don't usually give their customers satisfaction or what they want this actually chases customers away which leads to downtime in business..

Some people complain of business failure when they put there business in the wrong location imagine someone selling laptop ps5, Gucci and other expensive products goes to set up his or her business in a rural or poor or even low lifestyle area and is expecting to get customers or even for the business to boom this is really impossible as the people around that area doesn't know the value or cat even afford what you're selling which also leads to downtime in business you need to out your location is somewhere easy to navigate where your customers can easily find and contact you this will increase your sales.

Some business owners doesn't know how to market their products apart fro. Marketing online you can also use social media platforms like Facebook to market your products and even websites like jiji.

 

[anil02]

The truth be told , the business failure could be caused by so many things. The aim of every business owner is to ensure the success of the business. Majorly, I the business failure could be when the business isn't making profits. Profits is a yardstick that is used to measure the success rate of a business and that's basically one of the reasons why a business that is making profits could be termed as a failed investment. So, it is very important to ensure that you make some profits if a business is to be regarded as been a successful one.

The number cause of the business failure could be improper business plans. When the business isn't having a very good business plans . It is very likely that the business may fail and that is why one need to put on the table a very good, sound and result oriented business plan. This is the type plans that will put the business on the profit ladder. If the business plan isn't good, or if it's faulty, it will mark the beginning of the business failure. In the same vein, the knowledge on the risk of the business is equally important and that is basically the major reason why the knowledge of risk Management is very important.

What is new in it that most of us start business to earn profit and it is clear that if we are not earning or we are loosing than our business is file. But we also remember it than no one business can give us earning from very first day all business want some time.