Top Reasons businesses fail

When starting a business,one must always be prepared for it to fail. Business rarely flourish and become a huge success because running one is tough. When we look more into the reasons why businesses fail,we realize its because of 9 reason which are:

1. Bad business plan --> If the entrepreneur doesn't have a well thought out business plan,it will most likely not be able to compete with the older and more experienced competitors. 

2.Lack Of Capital --> Capital is the base of a business. In order for a business to grow,it must have capital to fund it.

3.Not offering Quality services--> Offering of quality service is what that matters most in business; if a business doesn’t have it then the business is calling for its failure.

4.Lack of Truth and Honesty-->  A successful business will be truthful about where their products come from to their costumer. By gaining a costumer's trust,it is guaranteed they will come back for more. 

5.Lack Of Effective Business Promotion-->  When a business doesn't promote its products,then it will not become known and costumers will prefer more known products than theirs. Which will eventually force the business to declare bankruptcy.

6.Bad business location--> When opening a business,the entrepreneur must be picky when it comes to the location. A business will fail if it is not in a noticeable place where people visit often.

7.bad usage of profit--> if the business profits can’t be use to re-invest in the business then the business will not grow.

8.Life Factor -->  Life factor does add to the failure of a business, maybe due to the way things are going with the business founders’ family or the business founders can’t just cope anymore. Also disagreement of the business founders does lead to business failure.

9.Bad Workers:  A business must always hire dedicated workers that will want the good of the company.

http://www.megabizflakes.com/top-10-reasons-why-business-fail

Corporate Social Responsibility

Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups.

The Good -> Haagen-Dazs & honeybee preservation:

Honeybees are disappearing at an alarming rate and that’s bad for the global food chain. Haagen-Dazs decided to create a micro site to raise awareness about the issue.The company is donating a portion of profits from its Haagen-Dazs honeybee brand to research on the topic. This concern for the environment and its social responsibility encouraged people to participate in their cause and buy their product.

The Bad -->Walmart:

Walmart does anything to maximize their profit. Even if it means cheating when it comes to their product or their workers. They don't provide a good environment for their workers or proper medical care.  

The Ugly --> Colgate:

The Ethical Consumer Research Association once recommended that its readers do not buy Colgate because of its use of animal testing. Colgate-Palmolive, as a successor to The Mennen Company, is one of about 300 companies held potentially responsible for hazardous waste at the Chemsol federal Superfund site in  New Jersey.Their involvement in this site may have contributed to the contamination of an estimated 18,500 cubic yards (14,100 m³) of soil with volatile organic compounds and lead off-site. 

Why do European Countries want to join the EU?

The EU was created as a union of free countries with the basic idea to put an end to wars, which have been ripping the continent apart for centuries, and to secure a safe and quality life for its inhabitants.until this very day , The European union is progressing and developing as well as expanding in size. Being a part of the EU means:

1. Access to a large and competitive market, where the same rules apply : This is especially important for smaller countries whose internal market is naturally more limited. On the other hand there are standards to guarantee the quality and safety of the goods.rules reduce the risk of venturing into a new market and enhance trade enormously. This also encourages countries to collaborate to produce more.

2.  Enhancing every aspect of Life : business, Justice System and standard of living.

3. An emphasis on the social sphere : In terms of people's lives this results, among other things, into a commonly accepted number of working hours for the week, number of minimal annual leave, social security and pension rules, maternity leave and child care rules

4. An emphasis on education and scientific research : Scientific research is something, which requires a powerful economy and substantial financial resources. The EU provides the money and time and makes it accessible to all the countries in the EU.

 5. Solidarity : This is a major principle, which makes every member of the EU much stronger in every aspect. This bonds EU members together and creates a feeling of stability and safety. Therefore, it is important that countries joining the EU have no unresolved problems with other EU member states.

With all these perks, All countries are fighting to join the EU because it provides higher standards of living and  diversity and unity. IT is much better for every business and economy to be part of something bigger.

Top Characteristics of Successful Online Stores.

Running an online stores that sells the same things actually stores are can be quite challenging. Some people do not trust the internet or buying items online so they refer to the old fashioned stores, this could be a problem for the entrepreneur and the business could become bankrupt. A successful online store has specific qualities or characteristics ,Like:

1. Ease of Navigation -->  The entrepreneur should make the website easy to deal with so that the costumer could find what they are looking for easily. The entrepreneur should minimize the amount of distractions on their website.

2.Minimal Design -->  The website should not be too loud. It should be simple so that the costumer could access and buy what they want.

3.Easy Checkout -->  Successful online stores make the checkout pleasant and easy by keeping the steps simple, but also by capturing the essential information in a succinct fashion.

4.Product showcase and promotion -->  There should be promotion and sales to keep the costumer coming back and purchasing more items. Product showcase can make the costumer notice an item they weren't planning on buying but were impressed by it so they end up purchasing it.

5.Accurate Product Descriptions -->  it’s important to be as descriptive and accurate as possible so the costumer feels comfortable making their purchase. Successful sites take the extra steps to provide high definition images and accurate product descriptions. Accurate descriptions also limit the number of returns and dissatisfied customers.

The Mission Statement

A mission statement is  an attempt to condense the central purpose of a business's existence into one short paragraph. They are important for a business because it lets the consumer know what the business is and what it does. It is not concerned with specific goal but tries to sum up the aims of the business in an appealing way.

Ameren

Mission Statement:Ameren's mission is to generate electricity, deliver electricity and distribute natural gas in a safe, reliable, efficient and environmentally sound manner. Our vision is to be the recognized performance leader of the U.S. electric and gas utility industry. Being a performance leader means we will achieve operational excellence, industry-leading customer satisfaction and superior financial performance. 

This mission statement is very clear about its objectives,it certainly only applies to electricity companies.  It informs us what this business is about in a way that we can not argue with or analyze. It also provides a clear vision statement with far fetched goals but in an indefinite time. 
 

Microsoft

Mission Statement:At Microsoft, we work to help people and businesses throughout the world realize their full potential. This is our mission. Everything we do reflects this mission and the values that make it possible

Microsoft's mission statement  is unrealistic ,it also applies to any business with an unclear statement. It does not tell the consumer what the business is about and it could be easily disagreed with. It does not provide a vision statement or any details,for that matter. 

The Walt Disney Company 

Mission Statement:The mission of The Walt Disney Company is to be one of the world's leading producers and providers of entertainment and information. Using our portfolio of brands to differentiate our content, services and consumer products, we seek to develop the most creative, innovative and profitable entertainment experiences and related products in the world.

 This mission statement is not time defined or realistic. It does not provide details on what it does nor does it provide any vision of the future. It could be analyzed.

How does an entrepreneur decide what structure of company he should start with e.g. partnership/ sole trade etc?

When starting a business,an entrepreneur is faced with an options whether to have a partner in the business or handle the business alone. Your decision could affect your liability, paperwork your company has to do and  your ability to make money.

There are different types of business entities like Sole trade which is complete responsibility over the company and the person has limited liability. You are also responsible for all the money you make. A partnership , however,  is when two or more people agree to share responsibility and money over the company. They plan what each person is accounted for and that person is responsible for that. The problem is, if that one person made a mistake,he could bring down the entire company. A corporation is legally separated from the people who founded it,they hire people to take care of it. A hybrid form of partnership, the limited liability company (LLC) , is gaining in popularity because it allows owners to take advantage of the benefits of both the corporation and partnership forms of business.

In order for an entrepreneur to decide the structure of his business,he must way the pros and cons for each option and calculate his every move. If he choose to go with a partnership,he must make sure that he trusts those who will share the business with him.



http://www.entrepreneur.com/article/38822

Marketing your own business.

Starting up a business can be risky, There is always a huge possibility that it will fail. As the famous saying goes " You must spend money to make money" ,That is precisely what entrepreneurs should do. One of the main things that could help a business become recognized and successful is to promote it.

 According to Michael Masterson, the editor of Early to Rise , business doesn't happen until you have made your first sale. The best way to establish itself in the market is to offer a popular product at a much lower price to compete with the old and more experienced businesses. It is important to select a business that would go on without you having to constantly supervise. Before starting a business,one must research about it and know how much money they are willing to incest and lose in this. 


The Brand image must represent the business accurately so people would not be confused as to when this business is about or what it does. The major thing to do to promote tour business is to place advertisements where people would notice them, whether its by TV,Magazines or billboard ads. When advertising, it is important to be clear about what this business is to avoid any confusion,you must deliver a clear message to the audience. Free gifts is also a way to promote our business and to get the costumer to come back after they have tried your product and want more of it or are curious about the other things you produce.

Having contacts in the market would definitely be a plus  to your business. When starting out, you should do some free charity work or some low cost deals to spread your name.Later on,more clients will come pouring in. Last but not less in importance,is every business should be listed in the business directories or yellow pages so they could be easily found by clients.




 http://www.sitepoint.com/business-8-steps-success/

http://make-your-marketing-work.blogspot.com/2007/05/how-to-make-yourbusiness-work.html

Types of Business Organizations

Private limited company  --> Ernst & Young : is one of the largest professional services firms in the world and one of the "Big Four" accountancy firms.

Public limited company --> Apple : is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. 

Public corporation --> CocaCola : is a carbonated soft drink.

Non-profit organization ( Any organization that has aims other than making and sitributing profit and is usally goverened by a voluntary board) --> Trees 4 Children : Trees 4 Children has secured the support from USAID and other global partners to help plant 30,000 Melia Trees per year which will be propagated and harvested for the long-term value of its timber.

Non-governmental organization (A legally constituted body with no participation or representation of any government)  --> Action against hunger:  is an international humanitarian organization with a focus on ending world hunger.

Pressure group (An organization created by people with a common interest or objective who lobby businesses and governments to change policies so that the objective is reached) -->  is an international humanitarian organization with a focus on ending world hunger.

Social enterprise (A proper business that makes money in socially responsible ways and uses most of any surplus made to benfit society.) --> The Eden Project :  is a visitor attraction in Cornwall in the United Kingdom, including the world's largest greenhouse

Public-private partnership ( Involvement of the private sector in the form of management expertise and/or financial investment in public sector projects aimed at benefiting the public.) -->  World Bank:  is an international financial institution that provides loans to developing countries for capital programmes. The World Bank's official goal is the reduction of poverty.

Starting a Business

It is not easy to start a new business,one must be skilled in many areas to be successful. There are many reasons a business could fail like competition, building a customer base or lack of record keeping. Competition is almost always a problem for new businesses unless it is a original idea. A business will generally experience competition from more experienced business with more knowledge. In order for a business to survive, it must establish itself in the market and build a reliable customer base. the longer the business survives the bigger the customer base gets. Lack of record keeping is a common issue when it comes to failed businesses. Many entrepreneurs fail to keep accurate recording,they believe that it is  less important than meeting the customers' needs.

Lack of working capital,Poor management skills and changes in business environment are also major issues entrepreneurs fail to run a successful business. Lack of working capital is when the entrepreneur runs out of money to keep his business going. This happens to a lot of businesses and that causes them to shut down. Most entrepreneurs have had some form of work experience,but not necessarily at a management level. They have not gained the experience they need to run a successful business. there is always the risk of change,many businesses can change if one of the following changes occur : new competitors,legal changes,economic changes and technological changes.