10 Major Causes of Business Failure with Possible Solutions

10 Major Causes of Business Failure with Possible Solutions

Do you want to start a business but afraid ofbusiness failure?

Have you started any business in time past but failed due to reasons not clear to you till now?

Well, you are about to find out what might have caused your new small business to fail.

I will be putting you through on the major causes of business failures and how you can avoid them.

Any entrepreneur starting a new business venture has PROFIT in the back of their mind.

Owning a business can be rewarding and at the same time very stressful and risky. Running a business is also not a child’s play.

There are certain factors that can cause business failure but lack of proper research for a profitable market before venturing is one of the main causes of business failure.

Your new startup can fail irrespective of your country’s ease of doing business. A well organized and structured business in Nigeria orKenya for example can be very profitable and more successful than a poorly organized business in the USA, UK, Canada, or even China.

Also, no matter how passionate you are about an idea or a particular type of business you must research the business to ascertain if such type of business will be profitable in yourchosen location.

As it is, there is no business that is not profitable, but if your business is not located at a place that the product/service is required, it will not fly or be profitable.

Passion is a key to success in business but itcannot guarantee profitability. If you are passionate about something but cannot monetize it, and yet you venture into it, then you are more of a charity organization that provides a service for no or minimal reward.

Passion is a key factor in business but it does not always guarantee success.

It is pertinent that you do thorough market research, consult before you venture into any business. Nobody wants a failed business. The pride of every entrepreneur is to see his/her business growing and making a steady profit.

Some entrepreneurs have started businesses but because of some certain factors, the business becomes a failure after a short while. I will be discussing some underlying causes of business failure with you.

“Lack of proper research for profitable market before venturing is one of the main cause of business failure.”