I faced a drastic failure in Business! Is this the statement that’s going on in your mind day and night? Well, the situation being hard you need to understand the causes or the reasons you have come across such failure.
The most common causes of failure that is almost 90% common in all the cases are:
Even if you possess an MBA degree from the top university the degree won’t guarantee success in your business. Another important that is important to be considered is the degree of importance you give to elements in your business. If you give importance to physical assets rather the employees of your organization you are going to get affected for sure in a negative manner. Another point is that the goal because of which you enter into the corporate world. You might also face failure because you have chosen a business line that isn’t profitable. You may even fail if you go wrong in your anticipation as regards demand, competition, pricing, technology, product quality expected by consumers, pricing strategy, you should be neither cheap nor expensive but indeed you need to be the best in the industry. It is dangerous to assume that what you have done in the past will always work. Challenge the factors that led to your Success. It is very well said, that in the process of making everyone happy, you will make everyone unsatisfied. Then what is better according small crowd of satisfied customers or all of the customers being unsatisfied and unhappy. The market pays excellent rewards for excellent results, average rewards for average results, and below average rewards for below average results. Believing you can do everything yourself. One of the biggest challenges for entrepreneurs is to let go. Let go of the attitude that you must have hands-on control of all aspects of your business. Let go of the belief that only you can make decisions.
Well analyze which of the above are the reasons for your business failure. Getting out with solutions for the problems is the only solution rather going on with the very first statement of mine “I faced a drastic failure in Business”
The most common causes of failure that is almost 90% common in all the cases are:
- The most common sited reason for business failure is poor financial management.
- The second most common is using the wrong business model.
- The third is poor marketing.
Even if you possess an MBA degree from the top university the degree won’t guarantee success in your business. Another important that is important to be considered is the degree of importance you give to elements in your business. If you give importance to physical assets rather the employees of your organization you are going to get affected for sure in a negative manner. Another point is that the goal because of which you enter into the corporate world. You might also face failure because you have chosen a business line that isn’t profitable. You may even fail if you go wrong in your anticipation as regards demand, competition, pricing, technology, product quality expected by consumers, pricing strategy, you should be neither cheap nor expensive but indeed you need to be the best in the industry. It is dangerous to assume that what you have done in the past will always work. Challenge the factors that led to your Success. It is very well said, that in the process of making everyone happy, you will make everyone unsatisfied. Then what is better according small crowd of satisfied customers or all of the customers being unsatisfied and unhappy. The market pays excellent rewards for excellent results, average rewards for average results, and below average rewards for below average results. Believing you can do everything yourself. One of the biggest challenges for entrepreneurs is to let go. Let go of the attitude that you must have hands-on control of all aspects of your business. Let go of the belief that only you can make decisions.
- Failure to focus on a specific market because of poor research
- Failure to control cash by carrying too much stock, paying suppliers too promptly and allowing customers too long to pay
- Failure to control costs ruthlessly
- Failure to adapt your product to meet customer needs
- Failure to carry out decent market research
- Failure to build a team that is compatible and has the skills to finance, produce sell and market
- Failure to pay crown taxes (PAYE and VAT)
- Merely attempting stability or had even less ambitious objectives, businesses which did not try to grow didn't survive
- Failure to gain new markets
- Non-payment by customers
- Poor sales & marketing
- Fatal leasing agreements
- Loss of financial backing
- Tougher market conditions
- Poor management
- Directors aiming to find new markets, but not making a single sale
- Companies diversifying into new, unknown areas without a clue about costs
- Companies finding that staff set up as rivals and stealing the business
- Company directors spending too much money on frivolous purposes thus using up all available capital
- Loss of market
- Tax liabilities
- A lack of working capital
- Bad debts are the cause
- Personal extravagance
- Legal disputes
- Falling property values
- Poor management
- Bad management of the capital available
- General rise in costs
- Bad financial management
- Poor forward planning
- Too heavy reliance on grants
- Poor collection of debtor book such as greater than 45 days
- Extended lines of credit
- Rising work-in-progress that is not billed on time
- Over-reached overdraft facilities
- Poor cost control with too many people responsible for purchasing
- The business widening its range of suppliers simply to make more credit available
- Contract disputes
- Outstanding debtors or potential bad debts seem to have rising suddenly
- Poor quality of product or service
- Poor labour relations
Well analyze which of the above are the reasons for your business failure. Getting out with solutions for the problems is the only solution rather going on with the very first statement of mine “I faced a drastic failure in Business”