There are many Reasons why business fails, and this is a fundamental knowledge that every business owner must understand and guide against. Every entrepreneur goes into business to offer some kind of services and in return expect to make some profit. However, this is not the case in some business ventures. Statistics shows that every four out of five business fail within their first five years. To unravel the reason behind this dilemma, I have examined the issue critically, and haven being in business for myself for the past 12years, I have been blessed with some wealth of information that has helped me to whether through the storms that usually come to every business.
It is my commitment in this article to excavate the hidden cancer that lies behind every failed business. I want you to read with the mind set of understanding these business killers, and guide against them in your struggle for business relevance and profitability in your chosen field of endeavor. The following are the reasons why business fails:
Wrong business foundations:
The foundation of a building will determine how firm the house will stand in the time of storms and rains. In the same vein, the foundation upon which a business is built will determine the survival of that business. Now, what do I mean by ‘wrong business foundations?’ A wrong business foundation is when the entrepreneur fails to understand what it means to be in business, before launching a business enterprise. Too often many business owners go into business because they see others making money in business. They fail to ask themselves some empirical questions, and find out how the fellow they want to imitate is making his money. They fail to find out the risk he is taking to establish his name indelibly in the sand of time, how he is copping with competition, what marketing strategies he is employing to stay ahead of competition and capturing an ever increasing market share. Instead of coming to terms in these maters and seeking expert advice, they rush out to establish a venture because they want quick money.
Though they have technical knowledge, and may also be very good at what they are doing. But as good as these are, these alone will not guarantee for success in business. I have seen instances where technically expertise companies starve for contracts while companies with less capacities go home with all the contracts.. That brings me to a fundamental truth, ‘technical knowledge alone does not guarantee business success in a dynamic world’. The fact that a person has technical qualification does not qualify him to be a successful business person. For more details, click on the following links:
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