Most popular reason for business failure

[Sotherefore]

In the business world today there are things we ought to put into consideration when deciding to establish a business, sometimes when the right decision are being made a business is likely to be more successful than when everything is not arranged properly. There are so many reason why most business are not successful , some of these reasons could be as a result of economics crisis, lack of business capital and so many other factors. But now I am bringing one of the most popular reasons why most business are not likely to be successful which is :-

*LACK OF EXPERIENCE MENTOR: Most entrepreneur when starting a business do not really consider this as a very important factors. Although some business may not need a mentor to succeed , Also in most businesses lack of experience mentors is always the reason why these businesses are not likely to be successful.

Some business managers are able to manage a business based on experience and their academic qualification but if an entrepreneur is establishing a business for the first time , he or she may not really have a better understanding of the business , as a result getting in touch with experience adviser should be the most important priority.

I have seen a lot of entrepreneur who chooses to receive advice about business from people that have no single business understanding , This is not always the best option in most business. When people without better experience gives advice concerning a business they might not really understand the Situation of These business and the right direction to tackle the problem from compared to people with more experienced.

 

[funmi]

There are Indeed somany reasons why business fail, although some of those reasons are so unique to some people due to their nature and personality, while other ar having a more general nature that affects almost all business persons in my country. As for me the major reason people fail in business right now is inadequate funding. Business is more or less like human being in the sense that it requires care and money to maintain itself this monies sometimes are called imprest. when imprest is lacking it becomes quiet difficult for anyone to run a business successful without killing the business gradually. People sometimes borrow due to lack of inprest and when they borrow they eventually find it difficult to pay back because the loan will eating up the capital and profit of the business and this things happen so gradually that one might not notice it immediately until the damage has gone very far. This is one reason why a large chunk of business today in my country exist only on the help of loans. Many of the small and medium scale business are all debt trapped and are struggling every day to pay up one debt to another.

 

[eldavis]

Another popular reason for business failure these days is the location. There are so many persons today in their quest for looking for a place where there is little to no competition, they end up finding a location that does not favour them in terms of their target audience. The location of the business plays a very important role on if the business would succeed or not.

 

[Yhubee]

There are many factors that can lead to the failure of a business.
First, inadequate planning.
Adequate planning is very important when starting up a business. A concise plan has to be drawn out concerning everything in the business ; your target audience,your customer satisfaction,the strategies you have to put in place, number of employees,the location of your business,how to promote your brand, how you will advertise your product and how you can be successful as a whole, so adequate planning is very important in a business.
Most people do not plan adequately, they just rush into the business and feel they will be successful maybe due to their experience and then they go ahead and along the line they experience failure due to the losses that they get.
Adequate planning will involve the source of your capital. planning covers every every area and so it is the most important reason why people fail in their business planning will cover the capital sources, other fundings for your business,how you handle your employees ,how you handle your customers, the strategies you will take to engage in healthy competitions with other people that are in the same line of your business, so adequate planning is the key to a successful business and without this,failure is inevitable.

 

[TOZZIBLINKZ]

The vision of every business owner is to make sure that his or her business flourish and prosper , yet many business owners with this kind of vision toward their business still fail . This is as a result of some factors that will not put into proper consideration either when starting or running the business . During the initial stage of starting a business , business owners fail to put the aspect of location into proper thoughts and so they go ahead to establish their businesses in areas where they can't reach potential customers for them to make profits . And a business who doesn't make profit is unhealthy and prone to go bankrupt anytime soon .

and also in the cost of running the business most business owners lack good customer service , also in most business organisation employees workers and staff lacked the requisite treat on how to treat they're customers or clients , this makes the business organisation customer service to be very poor thereby driving away patronage from members of the public . There are other factors also to put into consideration to prevent the failure of a business but location and quality of customer service are the major factors .

 

[Kendy]

For me, I think of the reasons for business failure is a faulty business plan, lack of self-discipline, lack of customers satisfaction, inadequate funding, no strategic location and mismanagement of funds. When the business idea is gotten and no matter how profitable the plan might seem to be, if it is not structured on a good and professional plan, the business will dwindle at the slightest challenge ocurrence. It would not be surprising if I told you that some business owner do not even have a business plan, all they have is a ledger book to input the sales for the day and readily calculate the profits. Lack of self-discipline and mismanagement of funds goes hand in hand because the available funds coupled with the profits would-be squandered without recourse. Location matters a lot and holds the centre of a business. If the location of a business is not strategic such that it can have easy access to the target audience, then such business will face decline. The business location should be accessible as well. Finally, customers satisfaction is very crucial and can either lead to the success or failure of a business. Customers satisfaction should always be the first priority then followed by the profits but this is not the case in the business world and this is why failure is on the high side.