WHY BUSINESSES FAIL!
July 13, 2021 | by Admin
So many businesses complain that since establishing their business, there have not been any sales improving or profit break-even periods. Some of these businesses continue trading on low revenue and therefore, find it hard to expand their businesses or establish branches in other places. I am thereby writing this business article to address some of the reasons why many businesses fail and will continue to fail If care is not taken.
5 (Five) Reasons For Business Failure
The following reasons according to my research and experience as a business consultant are among the reasons why some businesses are not doing fine as they are supposed to.
Lack of business plan
Any business that is not started with a business plan, is bound to fail or not grow as it is supposed to. Funny enough some business people think that the time to write a business plan is when they are sourcing funds or grants to establish the business. A business plan is not only for grant sourcing. You will still need a business plan even when you have the funds for the business at hand. A business plan is important because it will serve as a guide to your business actions which you must follow duly if your business is to grow.
Lack of Initiative
If as a businessman or woman, you lack intuition and initiative prowess, there won’t be much creativity in your works and this is going to make you lose the market competition among producers of close substitute goods. To remain on top of business, grow your capacity to be creative, and have super intuition, not only that, you must employ staff who have the same level of intuition as you that have that business, and of course, you can achieve this through constant staff training.
Lack of Profit plow back
You don’t eat all your harvest in a season without sowing much and expect to reap the same level of harvest in the next season. If you are a business person with a growth mindset, you must realize that all your profit is not for enjoyment. Plow some back to increase your capital and thereby increase your output, this is how businesses especially in third world countries where there are no business development and growth grants succeed.
Lack of Training
Your business is bound to fail if you don’t acquaint yourself with innovative business approaches. The method of business operation has changed and continued to change over the years and if you don’t cue into these technological advances in business, your business may never grow in this jet age. This means that through training, you should put yourself up to learn new business strategies and how they can work for your business.
Lack of proper customer care
The customer is the king in the business world and must be treated as such if your business must expand. This is why every business that wants to keep growing and not lose its customers to another company, must invest heavily in customer care. Make customers happy and they will bring more customers but make customers angry constantly and watch your company crumble gradually no matter how big it is.