5 Reasons Why Businesses Fail

[Starmix]

Our minds just suggest the cause of business failure and that is capital. Yes, capital is one factor why business ails, but there are other 4 reasons why businesses fail. I have a new business and am thankful that I am able to find these reasons that may evade the bad destiny of my milk tea-selling business. How hurting it would be if our business fails. It is not easy to start a new business, comply with the requirements and file permits to operate which is why we need to be careful in our business online or offline.


Five Common Causes of Business Failure: 1. Poor cash flow management 2. Losing control of the finances 3. Bad planning and a lack of strategy 4. Weak leadership 5. Overdependence on a few big customers.

We need to be smart. See to it that you manage your business well and check all the time your cash flow and find remedies to make it right. If think you made a bad planning, it is better for you to change them with good and strategic ones. If see your customers getting fewer, it is time for you to do something to save your business from failure.

 

[astutimeliana723]

Dishonest or fraudulent employees also often cause business failure, because sometimes their actions are truly fatal and destroy customer trust. It is difficult for us to gain customer trust again if the company has a poor track record.

 

[Shavkat]

I agree with the causative factors that you had mentioned. As for me, the most common culprit why businesses failed is mismanagement. It is always the root cause of having this kind of situation.

 

[Starmix]

You are all correct on your contentions why a business may fail. These 5 reasons I mentioned are just among the many reasons why a business fail. The owner must get hints.

 

[IB D]

Bad planning would just make a business to be taking decisions rashly because it doesn't know where it is going. A business with a good plan is specific on the path it is taking and takes decisions in that directions.

 

[Starmix]

It is a must in business to do the planning first to get the right direction of our business. It is not good to do the planning late. It might be late to save or salvage the business.

 

[Niyi Briggs]

Lack of proper supervision of a business can cause it to fail. When a business owner leaves all the work of running the busines to managers without supervising them, they can do mischief and the business fails.

 

[Starmix]

I agree with the causative factors that you had mentioned. As for me, the most common culprit why businesses failed is mismanagement. It is always the root cause of having this kind of situation.

That's right we always here the word mismanagement. It also happens in big banks closing or merging with the other banks. It's so terrible employees and bank clients are affected. It's so scary.

 

[hastral45]

Many factors could be responsible for the business failure. It could be economic situation, government policy, management policy, labour strike and other factors considered as miscellaneous.

 

[Starmix]

Many factors could be responsible for the business failure. It could be economic situation, government policy, management policy, labour strike and other factors considered as miscellaneous.

These factors you mentioned are also potential reasons why a business fail. There are also envious who might play havoc to our business beyond our capacity.

 

[IB D]

Some of the factors you mentioned can be controlled by the business. Some are out of the reach of the business to control. The bottom line is that business firms should try and control the one they can.

 

[SHAHID987]

1. Lack of interest
2. Lack of capital
3. Selection of area
4. Mis behaviour with customers.
5. Loosing temper
Not giving proper time to business. Mixing self expenses with business money.

 

[Shavkat]

That's right we always here the word mismanagement. It also happens in big banks closing or merging with the other banks. It's so terrible employees and bank clients are affected. It's so scary.

You are right. One of my uncles who has his business in CDO did this a couple of times. Until now, his siblings still believing in him. He had squandered a lot of money and let the other siblings fight each other.

 

[AruneBend]

There are many reasons why businesses fail: lack of market research, high prices, bad promotion, and more. Many people don't even try again. which is a huge mistake.

 

[Niyi Briggs]

Mismanagement is rampant in the business clime today. And it is one of the causes of business failures. When business funds are taken out of the business into something external, it would affect the business.

 

[Etini Willie]

Businesses fail as a result of improper planning, when we fail to plan properly it entails that we're already planning to fail. Lack of vision or purpose, a business without a vision is already dead. Mismanagement of funds, unnecessary spendings kill businesses faster than you could imagine. Poor quality of products or services, if majority of your customers complain about your products or services you're bound to fail because there'll be little or no patronages. Incompetence in business can cause your downfall, the level of work you put into your business determines the results you get.

 

[Heatman]

1. Lack of interest
2. Lack of capital
3. Selection of area
4. Mis behaviour with customers.
5. Loosing temper
Not giving proper time to business. Mixing self expenses with business money.

Lack of planning should also be added among those ones that you have already listed because whenever you fail to plan very well in any kind of business that you want to be involved in, you will definitely fail.

 

[Starmix]

You are right. One of my uncles who has his business in CDO did this a couple of times. Until now, his siblings still believing in him. He had squandered a lot of money and let the other siblings fight each other.

You better advise your uncle to stop doing that thing. It is not good to be greedy it will not give him the real richness and peace. He will always be tortured by his conscience.

 

[Etini Willie]

Another thing that kills businesses so fast is debts. Some businesses started with a loan and the pressure has made them not able to find their footing in the industry.

 

[Starmix]

That s right, debts do not give those businessmen peace of mind. It is better for them to pay partial every week or month to avoid the accumulation of charges. Life will not be smooth if there is debt. It is tormenting.