Business Failure can be ascribed to many reasons. Giving you all the reasons why Businesses fail in one post especially why small businesses fail may not help your retention. I will be giving reasons why small businesses fail with examples from my failed businesses and also from those that were successful.
I will be writing on these factors for business failure in parts every day. Every reason mentioned is very important and none is least, so do follow every reason why business fail with seriousness.
Table of Contents
Top Reason for Business Failure: #1 is Lack of Persistence
Today, I will be talking about PERSISTENCE or DILIGENCE or CONTINUITY in business. Many business owners or startup entrepreneurs give up too soon; they seem to be in a haste; but business does not work like thath. Diligence in business pays off so much. When you are starting a new business or a small business, you need time for the business to succeed; you need to give it time for people to know about the business and you also need time to learn more from the experience and the skills you will need to scale the business. Business Growth can be likened to a child who starts growing and learns how to sit, then crawl then walk and becomes a grown up man who can then have a family of his own. When you start a business, it needs to grow just like a baby and you have to know all the necessary information and skills needed to make the business grow and become big just as a man having his own family as mentioned above.
Why new businesses failis because the time you anticipated for its growth was not what you got when you practically start the business. Most times, your theory is just but theory, until you start the business, you may never know how true your theory is.
Examples why Businesses Fail
Take for example that you started selling shoes in your neighborhood, the day you open the shop, do you think everyone will get to know the shop that day? Do you think everyone will be in town that day? For everyone to know that there is a new shop around, it takes time. And people can only buy from you when they need to buy from you and not when you think they should buy from you. If I want to buy a shoe next month and you open a shoe shop today, you cannot force me to buy the shoe that I had budgeted to buy next month; This is the reason why you have to give time for people to know about your business and also buy at their will.
If you have two shops, let us say Shop A and B. If all the shops sell Provisions or food stuff but shop B is irregular or not always available anytime you want to buy something to cook. If shop A is always open anytime you need to buy the same product; which of the shops will you always go to anytime you want to buy the product? It will be the shop that is always available. This is the reason why you need to keep doing business even if it seems as if no one is seeing you, just continue. Your persistence and diligence allow people to know you and you could win them over with persistence.
Persistence is Important to avoid and prevent most Business Failure
Learn to Persist in Business, no matter how long it takes, give your business time to grow. Most times, I do give about 5 years for any business I venture into but most times, it does not take up to that time for it to start becoming profitable. You have to keep doing the business for most times of the day up to 10 hours, every day of your life for 5 years. That is my code for preventing Failure in Business. Just know that no matter how great your business idea may be, without persistence, it will still fail.
I started a Poultry farm few years back but it failed because instead of trying to get as much buyers as possible, I was focused on selling my first set of chickens with as much profit as possible to just the one buyer I found. Since I had just one person to buy at that time, I was forced to sell at low prices and I made little profit. I still felt bad and continued to focus on the profit instead of the network of buyers. If I had seen every buyer as an addition to my networks such that I had built the network of buyers to reach about 100 buyers, then I would have had so many choices to choose whom I will sell any set of chickens to him, depending on how the price is suitable for me but instead, I gave up after 4 sets of chickens. This is how horrible people think. You cannot get so many buyers all at once, you need time to know them and after you have known them, and then you can focus on the profit because at that time you will have a choice to vary your prices.
There are many other reasons why Business Fail but I will be writing one reason per day until I exhaust all the reasons why small businesses fail. Business failure is something that can greatly be reduced. I hope you find this useful and you can view my videos on Youtube on my Channel on Business and Entrepreneurship.