why do business fail?

Discussion in 'Growing and Managing a Business' started by marcus47, Apr 25, 2013.

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  1. marcus47

    marcus47
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    Hi everyone,
    Now i am part of your community. I have a small business. I want to know.
    Why do business fail?
     
  2. Biz

    Biz
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    Welcome to the community Marcus.

    Good question. I am also learning. I think one reason could be that the owner did not have a good match (have less) in their skills to the challenges of a particular business; and fail to obtain sufficient skills to meet the challenges along the way...
     
  3. magician661

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    Hi marcus,Welcome to Business Advice Forum.

    Main reasons of failing of a business are :No business plan,bad location,poor marketing,lack of capital.
    A business with no idea is just like a journey without destination.It is the most important and basic step to setup any kind of business.If the idea is good but the business is setup at wrong place then the idea is not worth.Also marketing plays an important role in business if there is no marketing how could any one knows about your product?
     
  4. marcus47

    marcus47
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    Thanks for this wonderful suggestion.
    If you not have any experience then doesn’t take a step in it.
    Especially in business you don’t live with just open eyes dream.
     
  5. GeekGhost

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    In my opinion the number one reason businesses fail is lack of planning.
     
  6. daytrader

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    Failing to improve probably.... I notice some of the business even give feedback cards too thier clients to see what else is needed to be improved their services.
     
  7. Rocky

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    Lack of pr proper planning and resources necessary to run the business are major factors that contribute to a business failure. However, the most important reason would be lack of passion. If you don't love your business then despite having all the resources you won't be able to keep it going for a long time.
    If it is your dream then you would do anything to keep in going. There are problems in every business but with positive attitude and approach you would take it forward and overcome all the challenges.
     
  8. daytrader

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    Right to the corner where I live, a noodle house stands out the most and almost all people knew the place when people ask or mention noodle house. I still eat there from time to time. The owner sometimes talk about business and he always set the example of a noodle house nearby where the owner seem to have drinking problem.

    It always end up to the attitude of the owner and how he handles customers.
     
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  9. simplyjo

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    Lack of motivation
    Lack of self esteem
    Lack of time
    Lack of skills
     
  10. scifi

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    One of the biggest reason many times is Macro Factors and external environment which is beyond our control. So strategies should be designed with keeping risk factors of these parameters under watch to prevent any unforeseen circumstances and failure as a result.
     
  11. scottbaird

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    There are many reasons to business fall. Lack of knoewledge, Lack of time or not good team. At the end its all depend on owner and their team.
     
  12. magician661

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    Instead of looking at why business fails one should be optimistic and should look why business Succeed ;)
     
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  13. TimeRider

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    There are many reasons why business fails. But always plan before you do. Without planing, you will always end up in bad situation.
     
  14. marcus47

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    Thanks for your nice suggestion.
    Not everyone has powered to fulfill own dream. At my site I think continuity is the best path to achieve the goals.
     
  15. marcus47

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    Planning is everything? what your suggestion about experience?
     
  16. AnushaJain

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    Business most of the times fail because it is out of our interest,we open our business on the advice of others.
    There is very popular saying:
    "you will accelerate there,your interest is present where".
    So my dear friend do the work in which you have passion,which gives smile on your face:)
     
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  17. bernierpacific

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    Running a small business is an exciting venture, but it comes with risk factor too. There can be many reasons for a business failure like lack of capital, no business plan,inefficient management and poor marketing. Whatever may be the reason, you must evaluate each and every thing in the beginning to avoid failure.
     
  18. chris_b

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    you have to have grip upon your business, when you are not experienced or do not know much about your business it fails.
    time management
    improper marketing
    lack of planning
    incompetent team
    are some factor of failing a business.
     
  19. marcus47

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    Nice positive thinking.
     
  20. marcus47

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    Thanks for this brilliant suggestion. yes, you are right attitude is playing a major key role in the business.
     
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