8 Sure Causes of Business Failure

by / Saturday, 19 August 2017 / Published in Lifestyle
With the trending economic situation, many businesses have failed.
Regardless, many of the causes of business failure can be prevented. T

*Lack of experience*

Lack of experience is one of the causes of business failure. If you are
inexperienced or your management is made up of novices, then your business
is likely to fail. When starting a new business, it is advised you get the
services of people experienced in that field.

*No accountability*

Some people throw accountability into the dustbin because they own the
business, Hence, there is no difference between their personal money and
business money. They simply spend. You must be accountable for any kobo
your business spend and makes.

*Poor location*

You cannot start a business where the service is not needed. Making it
classy will not make people patronise you. A good market survey is required
before a business location is chosen.

*Failure to understand your market and customers*

It’s important that you understand your market and customers buying habits.
Answering questions about who your customers are and how much they are
willing to spend.

*Overdependence on a single customer*

 If your biggest customer walked out the door and never returned,
your organisation or business may be done for. Hence, do not rely on a
single customer. Try as much as possible to diversify your customer base.

*Copying others*

What worked for Mr A may not work for Mr B. Many people have gone into
business or made a business choice because they see others doing it and
think they can be successful in it if they try. It is good you add your own
idea after proper consultation, that will make you different.

*Quitting too soon*

Giving up too early is the biggest reason why many businesses fail. If you
do not persist, research, fail and try and try again, you might not be
successful in business.

*Inadequate financing*

A business will definitely fail if there is no cash flow. Your business
needs a steady cash flow to take it through its day to day running.

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