Reasons Why your business will fail
Business is aimed at making a profit and generating enough funds for your bills and other use if your business is not doing any of this, then something is not right and it should be corrected, we will be discussing reasons Why your business will fail
with immediate effect. It’s okay if your very first business didn’t work as excepted but its never too okay if you keep failing.
In this article, I’ll give you an honest guide on how to avoid failure in business.
Before we start I’ll love to tell you a very short story, at the age of 12, I started running the family business all by myself, I never really understood what I was doing, but I tried to make money than what was in the record book.
How can this be done I said to myself, accessing the internet then was a huge problem for me as I’ll have to go to the cyber cafe to have access to the internet, I started having thoughts and thought until I decided to go out and call out for our customers and targeted audience
In less than a month I saw changes and I was thirsty for more success I did my research on various things and boom growth was established, customers started referring others to our shop and the profit was massive, shocked right, I had to go to school, leaving the business to someone and run I returned the business was already in the Intensive care Unit (ICU) but within 4 years the business failed and failed woefully the store was closed on my arrival and when I gained access inside, it was a total mess. my heart bled but I knew deep within myself that nothing can be done and right there I made up my mind to start my own business.
let us get to the main article Why your business failed
there are various reasons why the business failed, ranging from War, Tax, Pandemic, lack of management, Government policy, lack of advert, lack of adequate knowledge, etc.
Reasons why Business fails
1. Lack of Experience
2. No original plan
1. Lack of Experience: Before you start a business adequate knowledge about that business is the first thing, scout if any other person is doing the same type of business around your area and if yes get to know how he/she is surviving, use the law of espionage to spy on your competitors, go into their store make enquires and see how things are done in their store, with this you’ll know how to model your business. if this is not done the business will fail in no little time.
2. No original plan: When you start a business with no plans at all, planning they say gives you the upper hand against others in the same field when there is no proper planning the business is heading to halt and the end result will be to fold up.
3. Location: Your location matters in every business you want to start, if you establish your business where it is not needed your business will lead you into frustration, having a business with little patronage is no business at all
4. Loan: Starting a business with a loan can be devastating and frustrating, getting a loan is good but servicing the loan is another thing, my dad ones told me not to take a loan when starting a business, he said for someone get money and start yours and I saw reasons with him if you get a loan you can not service you might end up folding up and going out of business
5. Employees: Not all business you can manage alone, you need people to help in the management, Imagine running a huge grocery store alone, I’m pretty sure some customers will leave with your money or leave the store because they’re left unattended to, Steve Jobs once said, “It doesn’t make sense to hire smart people and then tell them what to do…” There’s a lot of wonderful wisdom to be learned from this advice, it should help you see that, as a business owner, your time can’t be spent micromanaging
6. Spending: Your profit is not meant to be spent but reinvested into the same business or another high paying business, some folks spend their profit and even spend what is meant to run the shop, if you keep mismanaging funds in your business it will definitely fold up when starting a business, give no room to luxury or a lifestyle that will affect your business health a good businessman and woman will definitely delay early gratification.
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