Failure in Business
Failure in businesses are influenced by certain factors. Not having proper and sufficient research on market profit before risky investment is one of the main causes of failure in business. Before accepting the risk and investing in any business, it is very appropriate to research and consult with experts. No one wants to have a failing business. The pride of every entrepreneur is to witness the growth and profit of his business. Some entrepreneurs start a business, but due to the specific factors of their business, it leads to failure.
The Cause of Business Failure
1. Failure to Ask for Opinions and Advice from Professionals
It doesn’t matter if you think you are knowledgeable. When you want to start a new line of business, it is better to seek advice and consult with professionals. This will help you determine if the business you are thinking about is profitable or not. Often times, entrepreneurs start a business because they saw a similar business being profitable for others. Having a coach who always keeps you from making stupid mistakes is essential.
Another advantage of consulting with professionals is that you meet and talk with people who have started a business similar to yours before, made mistakes and learned ways to compensate or prevent those mistakes.
2. Lack of Proper Attention to the Customer
Prioritizing and paying attention to the customer is important. A business that has good service and attention to customers will definitely progress. Proper attention to the customer makes customers return. If we do not treat our customers well, they will turn to our competitors. Learn how to show our customers that they are valuable and respected to us. Always ask them about the quality and consider discounts for their comments about the product. If we don’t get close enough to the customer, if we treat them like any other salesperson, when they come to you, they will have no other option but you. Our customer service department represents our brand.
3. Imitation of Others
What works for Mr. A may not work for Mr. B. Many people enter a business for this reason or choose a particular business because they saw the success of others in this business. They think that if they do this, they will succeed. It is better to recognize our weaknesses and differences compared to others. Imitation without consultation leads to a dead end.
4. Lack of Experience
Lack of experience is another reason for failure in business. If we are inexperienced or our management is crude and beginner, our business is doomed to fail. When we start a new business, we should benefit from the services of experienced people. They can be our partners or employees. Use experienced marketers and trained employees in the field of customer service.
5. Lack of Account
We must account for every riyal that we earn in our business. Most of the time, many employees do not have their daily sales account. When they sell one day, thinking that they can sell the same amount tomorrow, they spend their profit on their personal needs. To be successful, we must plan our expenses carefully.
6. Lack of Personal Growth
Many entrepreneurs do not invest in themselves. They want to be successful, but they don’t study, they don’t research, they don’t participate in seminars and workshops that increase their level of knowledge. Personal development in the field of behavioral and communication skills is a necessity. Achieving this skill is difficult and requires discipline and precision. It is very difficult to achieve success without correcting and improving our behavior. No one has progressed in life without self-improvement and increasing their knowledge.
7. Inappropriate Location
An entrepreneur decided to establish a coffee shop in a local area. The coffees of that coffee shop were very pleasant and the price was reasonable. His/her relationship with customers was excellent. But after one year, his/her coffee shop did not grow enough. He /She could barely handle it. Finally, he/she decided to sell the coffee shop, and after that, the 29-year-old entrepreneur, who had enough capital, felt that he could make this business profitable and fashionable by injecting money into the coffee shop. But he/she could not make the coffee shop profitable, because of the location of the business!
As a result, we cannot start our business in a place that does not need our services. Making the business stylish and trendy does not make people come to us and remain loyal to us. Before choosing a place to establish a business, we should check that area in terms of the market.
8. Lack of Concentration
Entrepreneurs may deviate from the main path due to minor preoccupations. When their focus is drawn to one side, their thinking power decreases. A good entrepreneur never stops focusing on important issues and priorities. But some people become obsessive and perfection about minor tasks that they can delegate to other people.
9. False Expectations
Some new intensives think that once they get started, money will just flow to them without any effort. Entrepreneurs who think they know more than others are to blame. Starting a successful business is not like running two hundred meters; It is like a marathon. If we don’t want to see our business collapse, we have to work hard.
10. Surrender Quickly
Giving up is the most important reason for the failure of many businesses. If we don’t persevere, if we don’t study and research, if we don’t try after failure, we might not succeed in our business. We must know that reaching halfway in business is never success.
11. Lack of Financial Resources
Another problem that causes the business to close down is the lack of funding or lack of funds. Entrepreneurs make a fatal mistake by starting their business with insufficient operating budget. The life of these businesses is not long; Because the founders are disappointed and discouraged if they have to compete with strong people.
Up To Sum
There are other factors and reasons for the failure of an entrepreneur, but the above 11 items are considered to be the main reasons for business failure. If we can overcome the problems, we have a long way to succeed in our desired business.