5 Reasons Why Businesses Fail

[junrose123]

I agree that poor cash flow management is really a factor on why certain business fails because it needs a big budget or capital in order to finance the business for a long period of time otherwise it would be very difficult to succeed.

 

[Stardom22]

There are so many reasons as to why businesses may fail. However the most common one is the lack of adequate amount of capital to funding of the business. However is a very great idea for making ways to get extra capital for the business.

 

[Starmix]

Lack of capital and mismanagement are also the usual factors why businesses fail. If the business owners mismanaged their businesses, the tendency to spend much and the reserved capital might be spent on something not related to business.

 

[uptrendfinancialsignal]

The inability to carry out proper market research is also crucial and it is part of the things that would be responsible for business not making success at all.

 

[eldavis]

Most business fail simply because they lack consistency. There are lots of business today that started well in terms of advertising and promoting, but along the line they gave up on that as well.

 

[cherry123]

As I used to say it can actually fail for diverse reasons which can be poor cash flow management as you have mentioned to even losing the capital of the business

 

[Starmix]

As I used to say it can actually fail for diverse reasons which can be poor cash flow management as you have mentioned to even losing the capital of the business

You are so right, there are many reasons why a business failed. If the owner failed to plan and implemented fully the plan. If the business owner is extravagant and spends the money from profit, there is a possibility that sooner or later the capital disappear like smoke.

 

[cherry123]

When you don't plan well your business will failed. If the owner failed to plan and stick to the plan. the business will collapsed same with the owner spending extravagantly

 

[Starmix]

It's best for the business owner to always apply estimation so that he can avoid or refrain from too much spending unless purchasing additional goods, if not, it's better for him to be less extravagant so he can expand his business.

 

[aovurevu]

Poor planning is another, it is said that proper planning prevents poor performance ..The fact that most people just do businesses because they see others doing it makes everything worse.

 

[cherry123]

Sure everything should be run by a budget to avoid too much spending which might bring high loss. Yeah unless purchasing additional goods, will bring high profit to the business

 

[Starmix]

Budgetting in business is necessary. It's also not good to spend the money for family use the profit from business. The business owner might forget and overspend instead. Inventory must not be neglected to get updates on how much was the profit or loss.

 

[cherry123]

Another is family members taking advantage and not wanting to pay for products or services. So this can also reduce the profit of the business and make the business to fail.

Post automatically merged: May 25, 2023

Another is family members taking advantage and not wanting to pay for products or services. So this can also reduce the profit of the business and make the business to fail.

 

[Starmix]

That might be one factor especially if the family relies only on the income of the business. The business will never grow fat. It's best for the family members to promote their business.

 

[cherry123]

Yes because when people keep using the items from the business without making payments there will come s time that things would just go wrong and there will be no money for the business

 

[Starmix]

Bankruptcy surely happens if all items are taken from the business without listing so that payments will be made as soon as they can have money. They better find jobs.

 

[cherry123]

I agree bankruptcy takes the lead. I notice that if some thing else happens to a business ut can still survive it but when there's no money then the business is gone.

 

[Starmix]

That's the worst scenario if the family members won't help their business grow. They need to pay the items from their business on order to sustain. It's not good to feel frigid and mindless. At the end they will regret.

 

[King Belieal]

I would pick lack of strategy as the common reason why businesses always fail. Even when finances are strained, strategy can always bail you out.

 

[Starmix]

Apart from what I mentioned above, there are other reasons why a business fail and that is laziness.