WHY DO BUSINESSES FAIL?

avatar
(Edited)

startup594090_1920.jpg
source

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.

qjrE4yyfw5pJD9LKQ1BG3NbSyKTowh8wnMyt99dddua4U41rZmpEeZf2o8BwWGgNBRCrCf9Rmzna4biVLCpU9f9uPbkBv73RzRynuaVKDqeD3ohUhbFD1znr.png

SOME REASONS WHY A BUSINESS COULD FAIL

qjrE4yyfw5pJD9LKQ1BG3NbSyKTowh8wnMyt99dddua4U41rZmpEeZf2o8BwWGgNBRCrCf9Rmzna4biVLCpU9f9uPbkBv73RzRynuaVKDqeD3ohUhbFD1znr.png
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.

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.
  7. 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.
  8. 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.

qjrE4yyfw5pJD9LKQ1BG3NbSyKTowh8wnMyt99dddua4U41rZmpEeZf2o8BwWGgNBRCrCf9Rmzna4biVLCpU9f9uPbkBv73RzRynuaVKDqeD3ohUhbFD1znr.png

IN CONCLUSION

qjrE4yyfw5pJD9LKQ1BG3NbSyKTowh8wnMyt99dddua4U41rZmpEeZf2o8BwWGgNBRCrCf9Rmzna4biVLCpU9f9uPbkBv73RzRynuaVKDqeD3ohUhbFD1znr.png
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

Posted Using LeoFinance Beta



0
0
0.000
17 comments
avatar

Well said my friend.
I agree with what you have said concerning the reason why businesses fail.

I hope business owners read this and make necessary adjustment to their business life

0
0
0.000
avatar

Entrepreneurship is the word these days but it sure takes a log to hard work - you are spot on with that
We ran a cafe for a couple of years and as much as you take pride when you get good reviews, the work that goes into it can be crazy... especially the first few years.
And this is where we learnt the hard way - location location location ;D

#DreemPort

0
0
0.000
avatar

When I tell people I don't think I want to start a business, they don't understand why but businesses are hard and it needs a lot of effort.

0
0
0.000
avatar

These days being an entrepreneur is sexy
Until you become one I guess (for some) ;p

0
0
0.000
avatar

It isn't sexy for me at all, I always tell people I prefer a 9-5 or freelancing, a business isn't appealing to me.

0
0
0.000
avatar

Most businesses fail in Nigeria because of lack of continuity. Business exist that are over 100 years. Because there was a plan for posterity. Na that kind business wey go live pass me I want dey do now.

0
0
0.000
avatar

Even with the mindset of continuity, there are other factors also that make a difference.

0
0
0.000
avatar

Yeah.. True.. But most I have seen, once they apply all you said and succeed.. A demise of the business owner crashes and closes the business. Sadly.

0
0
0.000
avatar

That's true especially in this part of the world where the family would try to take over.

0
0
0.000
avatar

Sad.. Without know how the business survives..

Reminds me of a Nigerian movie..
The one with Osuofia and Genevieve..

0
0
0.000
avatar

😆 you just want to kill me with laughter

0
0
0.000
avatar

How .. Lol

I think it is Lion Heart..

0
0
0.000
avatar

Oh yeah, it is lion heart.
Forgot about that movie, it was pretty over hyped.

0
0
0.000
avatar

I am glad I opened this box of passion. I totally agree with all these reasons you outlined why businesses fail. If we can identify all these reasons and work towards avoiding these things. I believe our businesses will blossom.

Didn't you compare the prices of products at that supermarket that was crowded and that of others?.... It might be that the reason why people are trooping into the supermarket despite not having so many products is because of their prices. It might be cheaper than that of other supermarkets around. My thoughts though..

@dreemport directed me to your post

0
0
0.000
avatar

Comparing supermarkets, the prices weren't all that different.

People here like new places so they flock towards one and then if you don't offer anything, they get bored and move on to the next best thing.

0
0
0.000
avatar

Oh.. Now I understand what the problem is. That means you must be prepared to satisfy them before you even think of starting up a business since these people get bored easily when you don't have things to offer... Interesting!

0
0
0.000
avatar

Exactly, they are attracted to new places so if you aren't offering new then you have to be on point.

0
0
0.000