Anyone can open a business but not everyone can develop their business successfully.
Have you ever wondered what the reasons for business failure are?
Is finance (or its lack) the only culprit in the case or is there more to the story?
In this short article and infographic we take a look at five significant failure factors. You can make sure to include them in your own business analysis and planning.
They have no concrete plans and ideas and a lack of guidance to execute the daily operation of their business.Businesses fail to realise that planning is essential within a business and instead they just 'go for it' based upon gut feeling.
Startup entrepreneurs think that they will be able to earn a big income on their own without collaborating with other entrepreneurs.Egotism could be a possible reason to hinder them from accepting other people's opinions for more business opportunities.
Inexperienced newbies who think that they know it all but in fact lack knowledge in some or all aspects of the business may be a cause of failure.
many people are unaware of how to focus upon their niche, how to manage employees, how to manage their finances and how to reach their potential and actual customers.
New entrepreneurs often fail to plan their business for the long term. They tend to focus upon the current situation, becoming involved in day to day firefighting. They love the idea of earning fast money by investing very little into the business. These issues can lead to devastating outcomes for the business.
When they feel like everything is failing some entrepreneurs give up the business with the idea that it is better not to lose too much money, to limit the downside loss. The entrepreneur fears failure and chooses to end it clean rather than cause a larger mess. Oftentimes though success is coming at the same time as the fear of failure is the worst.