The reason why most small businesses fail
It is becoming really scary to venture into the business world anymore, so many small businesses close down their doors every day and we do not get to see the reason behind the scene for the action, some of the reasons for the failure of small businesses is what I am going to be sharing below.
Lack of an online presence.
Every age comes with its own level of technological advancement and added advantage, this generation is moving towards an online presence and not getting into the moving train will result in frustration in business. The failure of most small business is because they failed to give their business an online presence which is very important for a business that wants to survive in this current age and time.
Poor customer satisfaction.
Satisfying customers is a strong game changer for every business, a business that believes in attending to customers poorly will fail in no time and because some small business owners are not finding the business world funny they decide to transfer the aggression to their customers who take that as an offence and never look back.
Customer satisfaction needs to be taken with adequate relevance and must not be played with at all for very business that is concerned with running for a long term. Some business owners also get so proud with their achievement and they begin to treat their customers irrelevantly forgetting the fact that their business is growing only because their customers keep coming back.
Lack of a business plan.
Most small businesses also do not understand the need to have good plans, having a suitable plan for a small business fosters growth but most small businesses operates for the basis of sustaining themselves alone and that is one reason why they fail completely, without a plan in place for a business it is certain that it will fail totally.
Lack of financial plan.
Most small businesses just earn and use it for personal needs all the time without setting anything aside for business development, a business that has no back up fund or method for growth will definitely not survive for a long time.
Entering into an already tight market.
Most small businesses do not think out of the box they are only ready to compete in already existing market because it appears desirable only to get in and realize it is not really convenient. A unique business will stand the test of time and produce a better result eventually.
The leadership of a business is highly necessary to survive the harsh phase of a small business, as a small business owner are you ready to make the required sacrifice to move your business to the top? In order for a small business to survive, it requires someone with a strong leadership skill to carry on the race.
I depart from the following philosophy, no matter the small, medium or large companies, good strategic and financial planning should be used for all, where the scope of our objectives is in the medium and long term, in order to see if our structure of cost meets our level of demand, and good marketing management in the link with social networks, for the client to facilitate access to the goods and services offered.
My point is that any business that does not follow the pattern of financial planning is not a business that plans for long term.
If you add to all this the adverse economic and social conditions that exist today, it becomes much more viable to fail.
Maintaining a business is difficult, under any context, but if you add several of the components you mention ... well, it is the perfect formula for failure.
Thanks for reading my post @josevas217.
Financial budget runs every business and a business that spends all it earns will never be able to hit the mark of growth.
Thanks for reading.
Hello friend, very good points, I must say that having a business is not as easy as people think, I work in one and the truth is many things that can make you fail, such as poor planning and organization, both time and money.
You are correct friend, thanks for reading.
It is seriously not easy to grow a business even if we have the best plan in place, but any business that has the characters mentioned here is sure to fail for real.
Thank you for reading.