WHY DO BUSINESSES FAIL?
A new supermarket opened in my state and for about 2 weeks now, there has been constant crowding so I and my brother decided to go check it out because we had some shopping to do. Getting there we realized that even though the supermarket did not have a lot of things, there were still a lot of people there and it made us wonder why.
After searching around for a while, we decided to go to where we usually bought things but on our way there, we stopped by at another supermarket which was very popular at one point just to also check around.
Entering the supermarket, we were very disappointed as it could have been easily compared to a ghost town in my opinion, most of their shelves were empty and even the things they had were in bad condition so we left wondering what had happened because it was a hit spot once upon a time.
SOME REASONS WHY A BUSINESS COULD FAIL
Now it is not a new thing for a business to fail but you have to ask yourself “what differentiates a successful business from a failing business and in my opinion, these could be some reasons that businesses fail.
- Wrong location: location is very important when starting a business because it can either chase or attract people, I think most business owners forget to realize that while planning for a business, you also need to strategically think about your location, for example, an ice cream person in a cold environment wouldn’t sell as much as another one in a hot environment so it is important to note this when starting any business.
- Placement and building: I put this differently from location because the second supermarket we went to had a prime location but the placement and the way the supermarket was built wasn’t coherent to a supermarket and passing by, you wouldn’t even realize that there was a supermarket there.
- Competition: everyone knows that as a business owner you would need to prepare to compete especially if there are a lot of people doing what you are doing, so it is important to always be ahead in the business you chose to get into.
- Lack of innovation: I have realized that in my state, a lot of people flock towards new things and if you want your business to last, you would constantly need to upgrade and innovate, or else people would get bored of you and move to the next best thing.
- Choosing the right business: it is important to make research before jumping into any business because it helps to bring clarity on what would be successful and what could fail.
- Lack of Population: the population is very important when running a successful business and the more customers/consumers you have, the more profit you make and the more your business would stay afloat.
- Management: a lot of businesses fail due to poor management and staff because the people in charge of your business can either make or break it, I have had several experiences with businesses and the reason I won’t return is because of their employees.
- Mismanagement of funds: it is essential to always differentiate the money you get from your business and your personal money because a lot of businesses forget to do this and it could lead to a lack of funds while trying to repurchase products.
Now I am not saying having all these things could make your business successful because there could be other factors that could spring forth from the economy, country, or even the environment but it is still important to work on the things that are within your power.
I would always say that managing a business is one of the hardest things ever and to me, a 9-5 could be way easier so if you choose to go on that route be prepared because it takes a lot of time and energy to run a successful business.
Thank you for opening this box of passion
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