tom m
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The number one reason most businesses fail is that they are not run by business people. The average small business is opened by someone who has technical expertise in their field or has a hobby that they are good at and they want to make money doing it. Examples are a mechanic who thinks he should be paid more opening his own garage or a lady who loves to cook opening a restaurant.
The small business owner opens the company because they think they will make money and then cuts corners on hiring good accounting help, legal help, and marketing help (it's too expensive). Also, the business requires them to be there all the time, if they are not working, they are not making money. Eventually, they get bored, burned out, or run out of money and business fails.
This does not happen all the time, there are thousands upon thousands of small businesses that are doing well. The main reason for their success is they hire professionals (accountants, lawyers, managers, sales people, marketing companies, etc.) to do what they can't do themselves.
If you are going to go into business, the best advice anyone can give you is to hire reputable professionals when you need help doing the things you can't do on your own. |
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John B
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They meet their customers needs |
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Anup B
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Businesses which have a financial plan and adopt low cost marketing methods are more likely to succeed than those which are being run merely by gut feel. Conserving financial resources and using them in productive ways are some of the keys to suceess. Discipline, Persistence and Self Belief are the vital ingredients in this mix. If all these are adhered to, then even a me-too business can standout!!! |
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Graham H
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There are too many answers for that but some are:-
If there is not a market for the product or service.
If the management cannot find and access the market
If the cost of production does not allow a profit to be made
If the product is under or over priced relative to competition
If the business is under capitalised
If the owners withdraw more than the business can afford
If there is no investment to stay competitive
If there are macro economic changes such as exchange rates in foreign markets
If another more efficient supplier enters the market
If a new and better product is introduced by another supplier
If there is a lack of staff skill and training |
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K L
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Did not follow their business plan, or the market was not ideal. Location. Some don't even have a business plan. Bad budgeting. No start up $$. There's a long list of things that go wrong. There's some people who 'go with the flow' and there's others who plan strategically with years of planning ahead, knowing where the optimal market is at, have their product and know how and why they are selling it etc. |
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just trying to make a difference
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MARKETING! the key is to thoroughly research the market and adjust your product or service to match this - then of course promote it in the right way to reach the target market.
PLANNING! again this is key - ever heard the quote "failing to plan is planning to fail" ? planning ahead will give you clear goals to aim for and will also help identify any problems early on so that you can do something about them.
CHANGE! being afraid of change is unlikely to help you in business, on a personal note you have to train, develop new skills and keep up-to-date, on a wider note if the market you are in starts to change you have to change with it to make the most of your business. |
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Lozy
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Those that succeed obviously marketed it correct. those that failed didn't. |
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Ginny Jin
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It is primarily down to market research. Providing a service which the customer cannot easily find elsewhere will improve chances of success.
Lack of financial objectives will ensure failure. |
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bruce a
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Developing a business plan will give you an idea of whether you have a viable business or not.
A lot fail because they go into businesses that are doomed
e.g. holidays in Birmingham |
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Robio the Great!
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In myexperiences, most small business ventures fail due to a lack of having a business plan AND because many first timers drop everything they're doing in life to start it, rather than continuing their normal everyday jobs and starting it as a side job. |
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Anoch Anseller B
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Some small businesses have the right tools to compete while others are not so they fail. |
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chewix b
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Having a great business model and a great planning before execution is a must!!! |
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