When there are big businesses, there are also small ones. the most common reasons include the following: lack of capital or funding, retaining an inadequate management team, a faulty infrastructure or business model, and unsuccessful marketing initiatives. I agree with these reasons for these were the causes why my brother failed in his small business. He retained those people who are not functioning well. His capital was also not sufficient to back up a marketing strategy. Marketing initiative is very necessary to avoid failure. Were you having a small business before but failed? Which among the reasons why your business failed?
Reasons why small businesses fail
- Thread starter Starmix
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- #3
Others just proceed with their plans that are not put into writing only thru actions that may soon fade away. Mismanagement is always the primary factor of a failed business. Too much expenditure could lead to bankruptcy.
I agree with you. That's the reason why we need to conduct feasibility study as much as possible.
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- #8
That might be true others jumped to conclusion and action without thinking if it's best or not.
Lack of capital and not able to retain talented staff leading to mismanagement are some of the main reasons small businesses fail.
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That's so right feasibility study is necessary if the business we want to operate is feasible attainable and profitable.
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- #12
Businesses fail because the owner never cares to improve his business. It seems he is not anymore inspired or tired to do planning for a competition. Other reasons might be personal or family grudge that lowers the esteem of the business owner which is wrong.
