Why do small businesses fail?
If you think you know the answer, send me your answer in a comment.
I already know the answer, I want to see if any of you out there know the real triggering event. I’m not talking about owners abandoning the business, I’m talking about they got out the paddles, shouted “CLEAR” and it was no use, the patient died… WHY?
Bad starting idea, lack of perseverance, those are solid reasons why a business does not take off or ever get viable, to be sure. If nobody likes your product or service very much or you don’t stick to marketing it, which can take 2 years of solid effort to see results, the business could flounder. I am looking for the actual triggering circumstance that makes a business go under. There are many things which could bring it to that point, but only one tangible circumstance…
Let me know what you think by leaving a comment below.
{ 27 comments… read them below or add one }
Lack of perseverance? A bad idea from the offset?
A lot of small businesses barely make it off the ground. Most individuals fail to realize just how much work it takes to successfully run a business. It takes great amounts of dedication, time, and patience!
no commitment…bad idea too
no revenue
probably not realizing from the beginning how much work it takes to actually get everything going and once youve started you realize it takes 10x more work than you thought it would
OK, no one gave the answer I was looking for…. the answer to why a business fails is deceptively simple, they RUN OUT OF CASH. That is the triggering event. Of course there are many things that cause them to run out of cash but this is the actual thing that closes the doors. Owners of businesses need to manage cash now more than ever. They need to plan for cash, how much they will need, when they will need it, and how much they will need.
Yes it is a lot of work to build a business and it takes a great deal of commitment.
However the most compelling argument I have ever read was the EMyth by Michael Gerber.
To paraphrase, once a baker opens a bakery he is no longer a baker.
I agree with the above poster. Capital is one of the essentials, of course it reaaly needs effort and perseverance.
~by Arabica Coffee Personnel
They fail for three reasons:
1. they dont know how to manage the business
2. yes, they ran out of money
3. they are in the wrong location and/or market
my two cents.
Bad Starting Idea:
No matter how hard you work, a bad idea is a bad idea, and it won’t work!
well the answer is that one only fails when they stop trying…
I think many people are thinking wrong. They think it is easy to start. The didn´t think really about what they are doing and how they doing. I am a freelance and my own boos and i work sometimes 70 hours or more a week. In the beginning when i start my busniess i had a 80-90 hour week. I was short to say it´s over but now i am happy that i haven´t canceled!
Business fails because of lack of passion and dedication.
They dont know how to manage the business,No effort and perseverance.
Bad starting idea, lack of perseverance, those are solid reasons why a business does not take off or ever get viable, to be sure.
Owners of businesses need to manage cash now more than ever.
Yes it is a lot of work to build a business and it takes a great deal of commitment.
However the most compelling argument I have ever.
Over 60% of small businesses fail due to a lack of planning and execution of a business plan. When businesses are so small it is rare to have an HR manager, because of that training and follow-up is non-existent. Who would be accountable and how could management implement a training routine to make it beneficial and cost effective?
Business fails because of lack of passion and dedication.
A lot of small businesses barely make it off the ground. Most individuals fail to realize just how much work it takes to successfully run a business. It takes great amounts of dedication, time, and patience!
Businesses fail due to a lack of planning and execution of a business plan.
oh yeah ! Really a good intimation.that is super helpful.
Yes it is a lot of work to build a business and it takes a great deal of commitment.
Business fails because of lack of passion and dedication.
Bad starting idea, lack of perseverance, those are solid reasons why a business does not take off or ever get viable, to be sure.
Lack of planning. Fierce competition.
Not realizing how much time and effort it takes to make business successful.