Why do you think a business fails?

Blessed19

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There have been times that someone who starts up a business planned it to be a very big and successful one be it a small scale business or a medium or even a large scale business.
At the long run you get to see it crash and crumble to the ground and you begin to wonder what might have been the cause for it to be so.

 

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Springtime

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There are many reasons a business fails. Lack of proper research resulting in offering product which does not meet the needs of customers; ineffective marketing/sales strategy; poor financial planning and management may also lead to the failure of a business.

 

SHAHID987

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Mostly small business fails when business owner starts using his business items personally, and he least bother to pay accountant for that. The business rolling money should remaining separate.

 

funkie

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Blessed19 said:

There have been times that someone who starts up a business planned it to be a very big and successful one be it a small scale business or a medium or even a large scale business.
At the long run you get to see it crash and crumble to the ground and you begin to wonder what might have been the cause for it to be so.

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This is an interesting question that can have multiple detailed answers, honestly. I think one of the major factors that businesses fail, especially in the first year is due to poor planning. Business owners must be able to develop detailed plans that assess risks, liabilities and unforeseen circumstances that could present in the future, so as to prevent the business from failing.

 

Blessed19

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funkie said:

This is an interesting question that can have multiple detailed answers, honestly. I think one of the major factors that businesses fail, especially in the first year is due to poor planning. Business owners must be able to develop detailed plans that assess risks, liabilities and unforeseen circumstances that could present in the future, so as to prevent the business from failing.

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There are times that business owners do have a very good plan which they make before starting up a business but still get to fail and the reason for that is what I want to know if anyone has an idea about it.

 

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Businesses usually fail due to many different reasons. I think that one of the reasons why a business may suffer a lot is very tough competition. When you compete with other giants in the field, it may make things really harder for you.

 

Niyi Briggs

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Businesses fail for various reasons. One of the reasons businesses fail is poor economic realities. Like now, with the inflation in my country businesses are failing everydau.. Others is because of rigidity of the entrepreneur.

 

IB D

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Businesses fail for so many reasons. One of the reasons I failed in business was bad location. The location didn't expose my products to potential patrons. Location is one if the reasons businesses fail.