Business Failure: 26 Reasons Behind and You Should Know- Comingweek

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Business Failure: 26 Reasons Behind and You Should Know

causes of business failure

Lack of idea & market Research

Because of lack of idea we can’t get our business go ahead. The idea and market researches are most important think to startup and lack of this think we can fail in start up.

Investing too much money

You get what you spend on start up but investing too much money you may not be able to get back. Investing too much before you grew enough to have the numbers to raise the next round,

Introduce in wrong platform

This is a common problem of all startup. People lack research and investigation they target and choose the wrong platform.

Commonly the wrong platform based on lack of target audience. First, we need to clearly define the target audience once that is done we need to identify the platform on which your target audience active.

Wrong decision taking because of wrong advice

One of the common reasons of starter failure is going ahead with wrong advice. Wrong advice on location, marketer, financial which is can cause of complete of starter failure.

Misunderstanding customer needs

Misunderstanding the customer needs is mostly affected on startup. Listening and fulfilled the customer need and offering them the product and service which they are satisfied with their needs it is the most important factor to understanding the customer.

Lack of promotion & investigation

Choose the right source to develop the business.

But without investigation and promotion no one gets ahead his business nowadays this is most power full program and source to develop the business. Adequate investigation and promotion are necessary for all the startup.

Planning high

Mostly peoples before startup they plan more than expectation but the lack of performance they fail in startup and everyone know business develop through the every person of contribution in performance.

Financial planning is extremely important for most new business. A lack of capital, lack of a contingency plan and reluctance to seek professional advice on finance of the company can lend business in a major problem.

No Proper Time and location

When launching a startup, time is everything. While certain factors are beyond the control of startups (economy, political factors etc.) a right launching time can be arranged.

Just make sure that company doesn’t launch too early or had to wait too long.

Launching to soon get put whole organization at risk of failure whereas on the flip side waiting too long will exhaust all the capital and other competitors will get an advantage.

Hence launching time will decide whether a startup will be a big hit or a big flop Startups prosper in some areas where it proves a disaster in others.

Deciding and sitting of startup location is crucial for the success of any of the startups.

Startup mistake and mistakes to avoid

Many small business owners make mistake.

But on flip side it means they dare to take risk,

That’s the key to success of any business. But indulging in many mistakes can land any business in serious trouble. And as always a common reason behind this are wrong business, wrong time and wrong place.

Too much reliance on the mentor:

When you put too much trust on the mentor. You have to figure out that which advice by mentor you should have followed most.

Even better that you can learn from the mistake that you have made. You can better learn next time.

No market research

One of the biggest mistakes startup faces is no or little market research so as to ascertain market as well as customer need.

No market research can collapse whole of the business in no time.

Market research is essential to know what customer wants, how much they want, at what time they want.

Launching of a startup with prior market research can do wonder with business.

Doing what you love:

Another reason that starts up fails is doing only those things that we love. Being flexible and coming out of comfort zone can boost business.

It is something that gives your most love to the doing your habitual mistake that you always do during the time of the start-up.

 There is always the possibility of being to achieve what you have not achieved before that.

Planning too late:

Any startup company to flourish have to have a vision that where is it?

Where is it going and will go? One should know their strength and weaknesses if it has to succeed.

It should have to do the best planning like a tortoise as well as like the rabbit.

Raising too much or little money

Every business is it on small or large scale requires money for day to day activities. About 90% of Startup doesn’t make money in initial months.

That’s why it is of utmost important to properly and adequate raised and use the money.

Every startup should be taken care of the cash flow.

You should take care of every penny but should also have to spend the money that has to spend according to the need of the company.

Do not having well-defined target customer

Any start-up company should not need to know much about who is my target audiences instead about to work on the load of the other factors that actually indulge you in the doing that business to ruin itself.

Not identifying your strength and weaknesses:

Every business possesses some strength and some weaknesses which have to figure out.

Knowing your strength and weaknesses is the 1st step of the success of any startups. Identifying strength and weaknesses are necessary so as to mold business according to it otherwise it would lead to a big disaster.

A half-hearted effort:

A lack of efforts and commitment is seen in most of the failed startups. If you feel like you don’t have any other option than starting a startup then you will stick to it and will do things half-heartily as you don’t see any other option. Startup requires dedication, commitment, efforts.

Ignoring competition:

Being ignorant of market conditions and competition can collapse whole of your business and be fatal to it.

Proper analyzing competition and then planning according to it can help to achieve great success in business. Keeping a track of completion through various sources like advertisement, media etc. can help to strategically plan business.

choosing the wrong name

Picking the correct name is of crucial importance for any of the organization. Don’t choose a name just because it’s easily readable and convenient.

The following questions have to be answered before going ahead with a name-

Does name describes your company or the nature of work done by them?

Is it easy to spell and read???

Is it catchy so that customer can easily recall them??

If the name upholds if we decided to go national??

The name should be such that it gives a description about the organization-catchy, easily readable and easily recall.

All going alone

How many startups have achieved success with just one founder??

There are highs and lows, not to mention some tasks that few can undertake alone.

The low points in a startup are so low that few could bear and handle them. There is a need to plan market, build product or service, take decision etc. can’t be tackled by a single person. Multiple founders and a little help from colleagues and professional will help to launch startups.

lacking focus and commitment

When any business is launched, one gets attracted to various objects and opportunity which are not part of regular business.

Distraction is the most important factor that contributes to failures of startup.

Weak financial planning and management

Financial planning is extremely important for most new business.

A lack of capital, lack of a contingency plan and reluctance to seek professional advice on finance of the company can lend business in a major problem.

Wrong launching time

“TIME IS MONEY”. This applies to startup too. When launching a startup, time is everything.

While certain factors are beyond the control of startups (economy, political factors etc.) a right launching time can be arranged.

Just make sure that company doesn’t launch too early or had to wait too long. Launching to soon get put whole organization at risk of failure whereas on the flip side waiting too long will exhaust all the capital and other competitors will get an advantage.

Hence launching time will decide whether a startup will be a big hit or a big flop.

the wrong recruitment strategy

An organization is known by the strength and attractiveness of Human Resource.

Hiring of right people at right time, at the right place & right number is difficult task and the dilemma are even more troublesome for startup founders who can’t afford decent salaries but need to boost their business.

Be sure that hiring doesn’t start too early and quickly. Most of the startup fails because of recruiting the wrong person.

Moreover by hiring people organizations incurred a huge cost. Hence properly planning for the human resource should be done.

not listening to the customer and not providing them what they needed

Listening to requirements of the customer and offering them the products which satisfy their need is one of the most important factors that contributes to the success of a startup.

Talk constantly to the customer to learn why they buy the product. Focus exclusively on that reason and be the best at that.