Saturday, June 22, 2024

5 Reasons Why Businesses Fail

It’s commonly said that failure breeds success! Business usually has “ups and downs”, it’s not all rosy. Failing a business doesn’t automatically mean one cannot excel in the business. Instead, its a stepping stone for success.

However failing once, doesn’t mean failing forever. If there’s consistent failure in a particular kind of business then there’s an issue. And the next thing to do after consistent failure in a business is to identify the issue, after identifying then a solution should be proffered immediately.

Some issues that causes business failure include:

  • Lack of enough resources: Resources is a driving force for any business that if absent, can make a lot of things go wrong and then, fail.
  • Profit mismanagement: It is essential that every business has a financial analyst who can keep records of the financial income,cost and details of the business to avoid mismanagement.
  • Absence of orderliness in the business: Where there is no law, there is no sin. In a case where there is no authority or organizational structure, abuse is inevitable and may run down the proficiency of a business.
  • Poor strategic planning: For any business to succeed, strategy is important. Without strategy,a company would not know when marketing is important or when they have to up their game in branding, thereby, losing customers. These, as trivial as they may look, they can cause the failure of a business.
  • Absence of trust amongst business partners or workers
  • There are so many other causes of business failure, to mention but a few. After proffering a solution to the problem, do all you can to avoid the problem reoccurring again to avoid failing a second time.

    Abayomi Adeola (Della)

    Abayomi Adeola Della is a Law Student in Obafemi Awolowo University. Author of two books, Entrepreneur, Business strategist/analyst, Leader and Blogger. She's passionate about business building and economic growth. Her best food is beans.

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