The most common reason for business failure.

[Sotherefore]

Thousands of businesses are being established on daily basis and most of these businesses are business with great future potential, but as a result of certain circumstances and lack of understanding the business may not succeeds or achieve the main purposes for which it was created for, due to this reason I have been able to come out with the following reasons that could possibly lead to business failure.

1) LACK OF EDUCATION EXPOSURE: People could say that the educational background of a business does not determine the success of a business, well I may believe this is not likely to be in all circumstances but at least a good educational background guarantees a high possibility of business success .

Business men with educational intelligent will be able to organise your business perfectly , They could also be able to manage a business intelligently by proper bookkeeping, financial management and discipline..A businessman who is not qualify academically may have a limited understanding of how to manage business perfectly compared to people with a good educational exposure

2) BAD LOCATION: This is one of the most commonest reason why most business are not likely to succeed, whenever a person is interested to start up a business the most important thing is to really understand the demands of people within the location you are setting up the business , failure to do this might result in channeling your business to the wrong location which could possibly leads to business failure.

3) BAD BUSINESS PLANNING: Lack of proper planning in a business is one of the reason why a business is not likely to be successful. generally it is not just about starting up a business but the most important thing is how you can be able to manage this business to a point that this business is successful.

When we are talking about management of a business this involve having a perfect understanding of business arrangement as a business owner , being in charge to supervise every activities that is going on in a business organization. As a business owner you should have a good understanding of business marketing, proper financial Management and possibly smart ways to solve your client's problem.

 

[Chibson]

There are several reasons businesses fail, sometimes it may be from the business owner and sometimes from the environment in which the business is located. Many people go into businesses without having proper plan of how to run the business at the end up not being successful on the long run.
The kind of environment in which you business is situated has a large role to play if your business will succeed or not, sometimes, many business people ignore the environment their business is located at the end up not making any progress after obeying every business principle. There are some things you need to consider whenever you are looking for a location to situate your business, some of those things are; the population of that particular area, the kind of business people does there and the income of people living there.
Another another major thing that can make businesses to fail is government policy. if you are in a country that the government policies is not favorable to businesses then no matter how technical or knowledgeable you are about a particular business there is a high possibility that such a business will likely not succeed. Competition is also another thing that kills businesses especially the new businesses.

 

[moonchild]

I've tried out some couple of businesses that failed and even though most of them are location independent which means location doesn't really play a role in running them, my biggest mistake was building something no one else needs or providing a service that no one else needs, I didn't realised this till when I sat down and observe keenly.

Most of the business that fail have. A problem identifying problems and how to solve them, they build because they think people will like it which most of the times turns out to be not correct.

I read a blog by Paul Graham he said if you want succeed in business build a solution that you yourself need, this way you've solve a problem the next thing to do is to find people that share the same ideology and boom you have a business. And to an extent this is really true and understandable.

If you do this then there's no way your business will fail, because you're solving a real problem

 

[Kendy]

There are many reasons for business failure but first of all, when the; passion, drive or motivation is not in line with the interest of the individual then such business would likely crumble. Also, the planning process, when once a business plan is not planned in a cognitive and professional way, then such planning will be faulty which would affect the nature of the business. Again, planning is very important in business and so is the location also paramount. No matter the level of funding in business, if the location is not strategic to meet with the specific and target audience then such business would likely not make profit as it should and also when there is lack of creativity and innovation in business, it will make it remain static and unattractive to customers. Again, one of the reasons that some businesses crumble is the incessant collection or obtaining of loans from financial institutions or online loan apps without reading the terms and conditions and envisioning how this loans would affect negatively on the business especially when it is a startup business where your are still trying to balance the chat between making profit and repaying the loan as well.