Why some newly established business go bankrupt.

[CALVINDOL]

The establishment of a business idea is definitely not easy because an individual who always have to ask questions and also scrutinize his ideas and opinions in other to make sure that his business ideas and definitely worth acting on . The formulation of business ideas cannot be done in a particular day but as seen in some cases it's absolutely take weeks and even years to formulate or come up with a good business plan that is worthy of accomplishments . There are definitely some reasons down to this day why some newly established business owner seems to lose the Wheel that controls their business in the right direction .

Some of these reasons include the combination of bad habits with business . It is absolutely important that every business owner understand the truth that in order to succeed in business they must let go of all the bad habits that is avoiding them from accomplishing their goals and one of this bad habit is procrastination and reluctancy . In an objective sense procrastination and reluctancy are basically the same thing but by definition they refer to an individual having an unwilling ability to act toward his goals but in this case his or her business goals and objectives .

 

[Sikapa]

There are many reasons why many newly established businesses run into a bankrupt. This is because most newly established businesses don't know how to penetrate into the market. As a newly business, you have to know the strategy of letting the consumers to accept you in the market. It is not easy to be accepted in the market especially if your product has a competitors or there is a similar product on the market.


Before you can be accepted in the market, you first have to let the consumers to accept your product by using a strategy called market penetration. By using this strategy, people will patronize on your product to know it's quality and they will demand for more. Every newly business have to use market penetration before they can be accepted in the market or else, people will ignore those product and hence the newly business will run bankruptcy. I think most business managers know this technique.

 

[anil02]

No single reason for bankrupt of a new business, If we start to analysis for failure of a new business than first is bad planning. To success in any business planning is must. Some business failed because shortage of capital. It is saying that short capital eats business. Lack of exprience is also one reason of failure of new business. Some time business failed because of change in government policy.

 

[King bell]

The majority of small businesses do not succeed within 5 years after its establishment . There are several reasons for this but one of the most important is that they fail to plan their business properly. They simply set up a business without any market research or planning, and then become disappointed when it fails.

Newly established firms often go bankrupt due to one of two specific causes. The first is that they fail to adapt their product to meet the market demand and start selling out. The second is that they engage in business activities which exceed their financial capability and soon run low on money. Thirdly, firms may fail because of bad management; for example the management may be unable to make decisions or the management may not have full confidence in the employees and so on. With all this, one should be ready and prepared before starting up a business firm in order to avoid failing down.