A.) Not having a business plan?
B.) Not hiring a good manager and/or accountant?
C.) Not hiring the right people?
D.) Not knowing the market?
E.) Not listening to your employees and customers?
F.) Not taking care of taxes, insurance, paying vendors for product and other business obligations.
G.) All of the above?
12 thoughts on “Why do businesses fail?”
I believe a lot of businesses fail due to hiring the right people for the job and a poor business plan that will project future growth for the business.
All of the above. Most people don’t realize they are in business trouble until they are well above their understanding level. Some people just ignore what they need to do or never research what their responsibilities are.
Thank you, Tanya for your feedback.
Thank you, Greg for your comment.
Reasons for business failures typically have elements of each.
All of the above. Some people are not prepared for what’s ahead of them. I believe that in order to succeed in whatever endeavor you’ve taken, you must be well informed. If you don’t find the answers, ask someone for help/assistance to guide you. Ignorance is definitely not bliss.
I believe it would be a combination of everything. If the correct people are not hired, they will not put in the effort that is required to keep the business running smooth. Also, if the owner of the business does not understand all of the details, and work it takes to keep a business running, it will fail. People need to do what they can to educate themselves on running a successful business.
The foundation for any business venture is the mission and vision statements. If you can identify the who, what, where, when, and why all else will fall in to place. Additionally, if something is not working being open to innovation and thinking outside the box is equally important. Even if it means re-evaluating the mission/vision statements. The world is a changing place and businesses must be able to tailor to their customers.
Thank you, Ivonne for your comments. 🙂
Thank you, Chad for your comments.
Thank you, Sam for your feedback.
Thank you, Melissa for your feedback.