Reasons why Businesses Fail

There are many reasons why businesses fail and here are some of them.

No Proper Planning
Having a business plan will give you an insight if the business will succeed or fail and will give you an advantage in planning for a proper strategy. If you are having a hard time creating a business plan then this business may see failure even before seeing a glimpse of success.

Lack of Market Knowledge
Having knowledge on your market will give you an insight on what will sell to them and how to sell it. This is also necessary in preparing for the 4 P’s of marketing. Knowing your target market will give you an idea how much to price, where to place, how to position and what sort of promotion will they respond to.

Non-profitable Business
IF at first you have prepared a business plan you will have an idea if the business is profitable or not.

Being Stagnant when there are Changes
Being able to react quickly on changes on your competition on your target market will ensure that your business is up to date and if not it will be behind on the fast-paced environment of industry.

Being Everything for Everyone.
Having a niche market will ensure that your will have a loyal and fanatic customers. Being everything for everyone will give you a very thin line on focusing your marketing budget and communication efforts.

Dependence on a Single Customer.
It’s not a bad business practice in obtaining a niche market but sometimes there are changes. After you have established your share on your niche market the business must not be complacent instead try to develop new product or service that will cater to new market while maintaining your good relationship with your current customer.

Published in: on December 9, 2008 at 5:49 am  Leave a Comment  
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