Do you want to start a business but you are afraid of business failure? Have you started a business venture before but failed due to reasons you are not clear about? Do you want to know the causes of business failure so you can plan yourself for success?
Fear of failure is a common thing in people and so you are not alone. In this article, you will find out what might have caused your new business venture to fail and understand the most common causes of business failure and how you can avoid them.
Starting a business is not easy. Succeeding in it is also not a simple errand. You may be amazed of how many businesses fail in the long or short run. Business failure is very common.
In the USA, about 20% of small businesses fail in their first year, 30% fail in their second year, 50% in their fifth year while 70% fail within their 10th year, this is according to us bureau of labor statistics.
There are many reasons why many entrepreneurs fail and it all comes down to a combination of preparation, strategies, and knowledge. The major reasons why businesses fail are financing hurdles, inadequate management, ineffective business planning, location, poor marketing strategies and lack of proper research for a profitable market before venturing.
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The following are some of the reasons for businesses failure
“Lack of proper research for profitable market before venturing is one of the main cause of business failure.”
- Not seeking professional advice
no matter how informed you feel you are, once you want to start up a new line of business, it is pertinent that you seek professional advice. This will help you ascertain whether or not the business is profitable as you thought.
- Lack of good customer care
Learn to show your customers that you appreciate them. Always ask them questions about the product and offer them some percentage when they give your product a review (either positive or negative review).
- Copying others
It is good you add your own idea after proper consultation, as that will distinguish you from others. Copying without consultation leads to a dead end. Do not copy, initiate
- Lack of experience
Get the services of people experienced in your field. They can be your employees or partners. Get experienced marketing personnel, well-trained customer service people.
If you must succeed in business, you must be accountable for every money you make. For a business you plan to grow, 60% of your profit must go back into the business.
- Lack of personal growth
Personal development of your attitude and communication skills is a must.
- Poor location
You cannot start a business where the service is not required.
- Lack of focus
A good entrepreneur or business person will never lose focus on what’s important and where their priorities are.
- Wrong expectations
If you don’t want to die in poverty or see your business collapse, then you must be diligent. Do not expect what you didn’t work for. If you’re not making impact, you are not living
- Quitting too soon
Before you start any business, you should have the mindset of I will do whatever it will take to succeed. That alone is the onset of your success. If you know that you know that you are doing the right thing, try and try and try and try until you succeed. Never give up.
For online related business
You need an SEO strategy that will work for you, a good online marketing strategy, and be certain you’re with a hosting company that won’t fail you. You need your online business to be accessible all the time, mobile-friendly website, and one that loads very fast.
Hope you now know the causes of business failure and you will make adjustments as required.