Why do businesses fail?

[jonn655]

There are a number of factors or a combination of them that sometimes cause a business to fail; but poor planning or co-ordination along with a lack of adequate knowledge on ROI are some of the main reasons. Vision and enthusiasm I think are necessary.

[jonn655]

There seem to be five reasons why small businesses fail:
1, No viable market
2, Poor capital structure, cash flow crunch
3, Lack of marketing expertise
4, Poor Management
5, Out of touch with customers
Detailed article outlining these five factors is here.

[Anthony Tori]

Lack of innovation. If Ford only continued to make Model T's, they wouldn't be in business today. Adapting to changes is important. What is more important creating innovative products instead of being a follower. Look at Apple as an example. Pure innovation!

[jonn655]

I agree fully with you Anthony. In this competitive world, innovation is a priority. Also some consumers might not mind buying the latest tech devices but they
might be more interested in the price equation.

[KH_Global]

Business fails because of less demand for products and services. Or it could be due to poor management attitude.

Robert

[genevie]

Business Fails because

lack of budget
wrong business location
Lack of Expertise
Poor management
Can not compete in a market
Underestimating competitors

If you have any Ideas ...you can add more.

[ramirezhenry55]

To add, there is lack of passion from the owner or it has no complete and comprehensive business plan to follow and it doesn't include contingent plans.

[genevie]

Hi,

Why do businesses fail? Ironically, the main reason is that the business owners didn't take the time to learn why most businesses fail before they ventured into starting a new business.
They don't know the nature of business and no background on how to manage...

[vinnz21]

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?

One famous reason in our place is vices, if you have a business make sure that you have no vices, to have your business grab the medal of success.
I have small business in pittsburgh, and little by little I notice that there is an improvement and now i can manage different ways on how to handle negative response to my carpet cleaners beachside place.

[vinnz21]

To add, there is lack of passion from the owner or it has no complete and comprehensive business plan to follow and it doesn't include contingent plans.

yeah i agree with you ramirez.

[ServiceBizBoost]

there are various reasons to this question. But need to understand. Normally, the businesses don't fail.

Maybe poor planning and execution

Lorraine

[saadibrahim]

There could be many reasons... you just have to identify the issues and fix them.

[Anneliz]

I'd say a lack of strategy..

[Anneliz]

By the way, this survey is recommended to anyone in the process of building a successful business or pursuing another form of success.
Click here The Dream & The Journey! Survey
It takes 2-3 minutes and gets you thinking about what you need to do when planning ahead to get better results in future.
Enjoy!

[jobslacker]

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 think business fail simply by your heart no longer being in it. Many people prepare their business as if it's a race and not a marathon. As soon as they see it's not turning a profit or get harsh criticism the positive energy they were producing in the beginning begin to turn negative. Thus start looking for excuses to shut the doors on their startup. If you start your business from the heart and treat it as part as your lifestyle the money will come and you will eventually win the marathon.