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
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