Why do businesses fail?

**KMDAS** · 02-16-2010 12:22 PM

Lack of vision, strategy, and cash just to name a few.

**beeezo** · 02-16-2010 01:29 PM

I think people get overwhelmed. At first, starting and running your own business seems "sexy"... you see all the "glamor". Once you get involved though.... stress, late-nights and responsibility... sometimes make you wonder if it's easier to work for some one else!

**MentorKristie** · 02-16-2010 05:33 PM

I think the main reason is how the companies are set up. A lot of companies have more overhead than they can handle and they end up going bankrupt. Those fancy buildings and jets are not a good thing! The money is being taken from somewhere and most likely from the distributors pockets!

It's important to know what kind of company you are getting involved with. Is it one that is looking out for the distributors best interest? After all we are in this business to make money. Do you research before signing up for anything!

**capeomar** · 02-22-2010 04:14 PM

The conventional business model has changed! Take a look at General Motors, Lehman Brothers, Citibank just to name a few! It is my humble opinion that this is the perfect time to take a look at "unconventional" business models.

**stellamary** · 02-24-2010 02:29 AM

I will say the reason should be improper planning...I have been doing the home outsourcing jobs for the betterment of business process.keep sharing.

**Vurlo** · 03-02-2010 10:11 AM

Who made this a sticky in the 'Social Entrepreneurs' area?

**JMediaConsulting** · 03-18-2010 03:10 PM

Jim Collins -- "How The Mighty Fall"

**tdlanier** · 03-31-2010 07:11 AM

Because of fear of failing!

**Office_Furniture_MIA** · 04-09-2010 04:11 PM

There have got to be 1,000,000 reasons why businesses fail.

However, I whole-heartedly believe each one stems from vision. Or, call it positive visualization if you will. More conservative entrepreneurs and business owners usually call it a growth strategy.

Whatever you call it, it's a positive, all encompassing faith that you've analyzed all the challenges, you've made your plans actionable, and can constantly move forward with confidence.

Aha! Maybe I've just stumbled upon the ONE reason why businesses SUCCEED. Let's concentrate on that, fellow entrepreneurs.

Warm regards,

**wdywft** · 04-12-2010 01:42 PM

my teacher always said the number one reason that businesses fail: lack of start-up capital (wouldn't your biz do better if you have a million dollar advertising budget>>>)

**African-Curios** · 04-19-2010 07:28 AM

I would say lacking in the 5 Ps........Products, People, Patience, Planning and Place. I take this as the backbone in running any organization or business

**lawinc** · 04-25-2010 08:29 PM

Lack of Planning
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same could be said of most business successes.

It is critical for all businesses to have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future.

Components may include:

* Description of the business, vision, goals, and keys to success
* Work force needs
* Potential problems and solutions
* Financial: capital equipment and supply list, balance sheet, income statement and cash flow analysis, sales and expense forecast
* Analysis of competition
* Marketing, advertising and promotional activities
* Budgeting and managing company growth

In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.

**SethKravitz** · 04-26-2010 10:49 AM

Originally Posted by canzior

What are some of the reasons that you think most businesses fail? Specifically, not anything general like poor planning, but what exactly causes them to go under? I am curious cause my website Jobs4Trade.com is up and coming(service trading and bartering) and One of our approaches is planning not to fail as well as planning to succeed. So what is a businees killer?

I wrote an article a little while back that was picked up by the Harvard Business Review on this exact topic.

Part 7: Is this Worth It? (Updated)

**schlottco** · 06-02-2010 01:49 PM

Greetings all,
I think it's important that all businesses have what I call the "End Goal" in mind. Simply put, whether you have a small, home, or large corp. it's easy to get caught up in day to day operations and lose sight of what your there to accomplish. I believe in building an overall vision of the your goals that is nurtured by management and repeated frequently to staff so that everyone's get on the same page. Once you focus on the end result you'll find it easier to come up with better options, and or solutions to why your business isn't where it should be.

Great Post!

John Schlott

P.S. Please stop by my profile and introduce yourself. I'd love to meet you!

**Suztulien** · 06-02-2010 06:06 PM

So many small business entrepreneurs and passionate about what they do, however many don't do the due diligence to define their unique brand prior to opening its doors, or even years into building the business. Defining your brand's DNA is critical to creating authentic differentiation, unique customer experiences, and consistency in how you do what you do.

Learn more about this methodology in our new book: Brand DNA at the Brand Ascension web site.