Small Business Failure: Common Reasons Why It Happen

2개월 전

Blue Ocean Photo Summer Instagram Post.png

Everybody one to start one business or the other but nobody pray for it to crash or fail. Most small businesses do fail because of some certain reasons the business owners neglected. Before starting a business that are various things you need to take note of. According to research made by Small Business Administration which was done in 2019, it was made known that at least 20% do fail during their first year of starting the business and within the period of 10 years only 33% will survive. The are things you need to note before starting the business you have in mind

Never Start A Business With The Wrong Intention

Before you start a business, you need to ask yourself, why am I starting this business. You will ask some business owners the reason why they start their business, some wont have a good reason and some will be like to keep themselves busy, to make more money, to stay away from families and so on which aren't genuine reason to hold onto. Having a good reason to start that business will serve as a foundation because even if it fails you will surely have a good reason not to quit. Some reason should be, you have passion for that business, if It fails it wont defeat you because you will surely learn from the mistakes that occurs and use it to succeed in the next business.

No Market Or Market Is Too Small

Before you start a business, you need to check out the market first, very important. You must know If market is available for what you are planning to bring in because no matter how good your market is or how good you try, the market will surely fail. You must also be able to know if the market is big enough for you to profit from, if any disasters or economic changes occur, it wont affect your market.

Is Your Capital Sufficient

Lack of capital to sustain a business is one mistake most business owner make, they fail to estimate the amount of capital they will for the business and most don’t even have knowledge about cash flow. This always lead them to shutdown even before the business start succeeding. Before you start that business you have in mind, you need to estimate two things, the money you will need to start a business and also the money you will need to stay in the business, you have to think beyond what you are planning, what if this or that happens, what if the business take time to grow, will I have enough capital to sustain it till then. This are things you will need to consider before starting that business.

Using The Wrong Location

This aspect, people always underestimate it or just decide to neglect it, before starting a business always check out the location, A business in the right location will surely yield good result, Goods you suppose to sell in the urban area, you are now selling it in the rural area, how will it grow. Things you need to note when it come to locations are the availability of customers, is there enough traffic to generate, light, competitors, environment conditions and so on.

Planning is really important, you can also make your research or make enquires from people who have engage in one business or the other, they will always let you know that if strategic planning and hard work is not present, succeeding in it will be very hard. You need to plan it well.

Authors get paid when people like you upvote their post.
If you enjoyed what you read here, create your account today and start earning FREE STEEM!
Sort Order:  trending

You are right friend.
When starting a business, let your intention for starting the business be solid. Because it will get a point in the business where it is the intention that will keep the business going and pushing

I think another important factor you forgot to add is actually lack of business knowledge... Some people are doing the business because others are doing it even though they have no knowledge about how the business works and they aren't also ready to make any personal research.

Thanks for sharing this great post with love from @hardaeborla and I hope you have a great day ahead

I think your points are very accurate, we must be sure of what we want to do and the business we want to undertake. Organizing our ideas about it is the best thing we can do. Capital is another important point, I think we should have a good support in case things don't start well.

Congratulations! Your post has been selected as a daily Steemit truffle! It is listed on rank 12 of all contributions awarded today. You can find the TOP DAILY TRUFFLE PICKS HERE.

I upvoted your contribution because to my mind your post is at least 4 SBD worth and should receive 85 votes. It's now up to the lovely Steemit community to make this come true.

I am TrufflePig, an Artificial Intelligence Bot that helps minnows and content curators using Machine Learning. If you are curious how I select content, you can find an explanation here!

Have a nice day and sincerely yours,

If there is no plan for our business we are certainly going to fail with the business entirely, it is relevant that before any business is founded at all, it is properly planned.