Why A Small Scale Business May Fail
In recent times, I have been talking more about achieving business success. I think it will be nice to consider some factors that may make your business fail too. "Knowledge is Power" - when knowledge is applied effectively, it may lead to success. So studying why businesses fail will help you learn one or two things.
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For the past 3 years, I have been running a small scale business. I have had both ups and downs. I have seen many small businesses fail, so let's look at some reasons why they failed.
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The motive or reason for starting a business may lead to it's failure. Starting a business for the wrong reasons is like building a house with a fragile foundation - It will fall someday. Imagine an individual quiting his job because he does not want to have a boss and he believes he will survive on his own.
Quiting his job is not the problem, the problem is the reason for quiting his job. If he is quiting his job because of laziness or impatience, then it will be difficult for him to survive as an entrepreneur. Because as an entrepreneur more work may even be needed to succeed.
If you fail to plan, you are planning to fail. - Benjamin FranklinPlanning is a key ingredient to success, especially when with the right strategy. When you combine a good plan with the right strategy, then the outcome would be desirable.
Managing the business properly is another thing to look at. Poor management always kill businesses. Employ able hands into your business, sentiments should far away from you. If you see that you cannot manage it on your own, you could invite an expert and discuss terms with him.
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Expanding your business hastily may also result in failure. Expansion results in more profits, but this should be done gradually. You do not want to overwhelm your customers. Managing business growth is not easy, so it is something you should prepare for, not suddenly. Before expanding a business, you should do some analysis to see if it is actually the right time, research to see if the market demand of your products has increased.
Thanks for reading :) I will appreciate your feedbacks. You can read also, How To Prevent Identity Theft Online.
Good business plan is vital in any business. It is important to note what kind of business setup to be established in a given area(market), because when you have the right business in a wrong market, it will fail eventually.
Thank you for sharing this @jaff8 👍👍
Thanks for reading. I agree with you, market needs is important.
These are wonferful guidelines for prospective business minded, or intending business men.
Yeah, but no knowledge is waste - It may be helpful to anyone someday. Thanks @hilltop, for reading.