13 Common Causes of Business Failure
“Failure is a topic most of us would rather avoid. But ignoring obvious (and subtle) warning signs of business trouble is a surefire way to end up on the wrong side of business survival statistics,” this is according to On Strategy HQ.
Failure in Business is supposed to be a lesson , but because it cost a lot, in terms of finance, time and other resources. To avoid this, put in these resources before starting the business to ensure you secure them after the business has kicked-off.
Having a ride on the entrepreneurial roller coaster can be a tricky thing. While thriving on profit-making opportunities, business owners often fail to cope with new challenges. As a result, they find themselves at sixes and sevens and this is why businesses fail woefully.
And in the worst scenarios, they can’t even figure out what actually went wrong!
What’s the survival rate of new businesses? Statistically, roughly 66 percent of new businesses survive two years or more, 50 percent survive at least four years, and just 40 percent survive six years or more. This is according to the study “Redefining Small Business Success” by the U.S. Small Business Administration.
Learn how to avoid the most common pitfalls in strategic planning. Watch this video to the end. With the information given therein, it will serve as a backdrop, after understanding the 13 common reasons businesses close their operations.
It is a fact that running an organization is no easy task. However, being aware of common downfalls in business can help you proactively not reactively avoid them. Interestingly, it’s a constant challenge. We know, but it’s also a continuous opportunity to avoid becoming one of the statistics as given in this vide.
