There are so many reasons/causes businesses fail. A lot of people go into business with lots of expectations but sadly not enough dedication.
As a business owner or entrepreneur, starting a new venture can be challenging as well as rewarding. But there are certain factors that can lead to the failure of business and since nobody wishes for their business to fail - you have to make sure you go through the following causes of business failure and see how you can avoid making them.
1. LACK OF EXPERIENCE:
This is one of the major reason most businesses fail. As a business owner or an entrepreneur, it is advisable to seek or employ the service of experience persons that share the same passion and zeal with you, and also help take your business to great heights. Hiring inexperience or untrained persons might cause you a lot and possibly lead to the demise of your company.
This is one of the major reason most businesses fail. As a business owner or an entrepreneur, it is advisable to seek or employ the service of experience persons that share the same passion and zeal with you, and also help take your business to great heights. Hiring inexperience or untrained persons might cause you a lot and possibly lead to the demise of your company.
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2. LACK OF SUPPORT:
As humans, we all need support one way or another in our daily lives. And as an entrepreneur with a new business venture, it is good that you seek support and have someone who you can go to for professional advice. Having the right support will enable you to decide on time whether the proposed business will be favourable or not . You see, too many people go into business for all the wrong reasons - they go because they see others doing well in that business and they don't care to know before hand the kind of support or back up that individual has.
As humans, we all need support one way or another in our daily lives. And as an entrepreneur with a new business venture, it is good that you seek support and have someone who you can go to for professional advice. Having the right support will enable you to decide on time whether the proposed business will be favourable or not . You see, too many people go into business for all the wrong reasons - they go because they see others doing well in that business and they don't care to know before hand the kind of support or back up that individual has.
So it is very wise to consider getting a business mentor in anything you do, someone who is ahead and successful, to guide you through and to also hold you accountable.
3. LACK OF FOCUS:
Entrepreneurs, sometimes tend to focus on too many things at the same time and it tends to make them get carried away in the process of trying to get things done in the right way - much to their disadvantage. A dedicated entrepreneur or a serious minded business person, know better than to get involved in one too many tasks, he or she stays focus and never loses sight of the target goal.
Entrepreneurs, sometimes tend to focus on too many things at the same time and it tends to make them get carried away in the process of trying to get things done in the right way - much to their disadvantage. A dedicated entrepreneur or a serious minded business person, know better than to get involved in one too many tasks, he or she stays focus and never loses sight of the target goal.
4. NO GOOD CUSTOMER CARE SERVICE:
There is a popular saying in business " The customer is always right." Good customer care always lead to loyal customers. As a business owner, your customer should be your number one priority, they determine the failure or success of your business. You should at all time, learn/know how to treat your customer right, let them know that you appreciate their patronage and from time to time offer them incentive to motivate them. A lot of business have failed largely due to lack of customer care, some business owners treat their customers like they do them favours by selling their goods to them. When you treat your customers shabbily, best believe they will take their money to your competitors.
There is a popular saying in business " The customer is always right." Good customer care always lead to loyal customers. As a business owner, your customer should be your number one priority, they determine the failure or success of your business. You should at all time, learn/know how to treat your customer right, let them know that you appreciate their patronage and from time to time offer them incentive to motivate them. A lot of business have failed largely due to lack of customer care, some business owners treat their customers like they do them favours by selling their goods to them. When you treat your customers shabbily, best believe they will take their money to your competitors.
5. POOR LOCATION:
Location matters a lot in business. When siting a business, you need to consider the area where the business will be located. It goes a long way to determine how well your business will do. In situation like this, a market survey needs to be carry out first to pre-determine if the area is accessible, suitable for your business and if it will bring in the right customers.
Location matters a lot in business. When siting a business, you need to consider the area where the business will be located. It goes a long way to determine how well your business will do. In situation like this, a market survey needs to be carry out first to pre-determine if the area is accessible, suitable for your business and if it will bring in the right customers.
6. LACK OF PERSONAL DEVELOPMENT:
Lack of personal growth is another major reason businesses fail. A lot of people fails to take their time to invest in themselves first, they just go ahead and established their business and hope for the best. People crave for success but they do not want to put in that work that will get them to achieve that success. There are so many ways one can grow in their business, this includes;
Lack of personal growth is another major reason businesses fail. A lot of people fails to take their time to invest in themselves first, they just go ahead and established their business and hope for the best. People crave for success but they do not want to put in that work that will get them to achieve that success. There are so many ways one can grow in their business, this includes;
* Reading or research - it helps to expand your knowledge and equip you with the necessary information.
* Attending business worship or seminars that will help build and develop your leadership and communication skills
7. LACK OF FUNDS:
Many people make the biggest mistake of starting a business with insufficient funds, when now face with little challenges, they soon pack up and close shop. It is always in your best interest before starting a business, to first get a business plan. With the business plan, you should be able to know how and where to get the required funds for your business.
Many people make the biggest mistake of starting a business with insufficient funds, when now face with little challenges, they soon pack up and close shop. It is always in your best interest before starting a business, to first get a business plan. With the business plan, you should be able to know how and where to get the required funds for your business.
In conclusion, before you go into any business, have it in mind that there will always be challenges and you should be prepared mentally to withstand all odds to make your business stand. With the help of the listed reasons above, I hope that you will be able to use it to turn your business into successful venture.