Wednesday 16 September 2015

5 REASONS WHY BUSINESSES FAIL WITHIN 2 YEARS OF ESTABLISHMENT




Starting a business is a great idea. Everyone wants a flourishing business. When you see your neighbor doing so well in his business, you cannot help but to envy him. You begin to think  about establishing the same kind of business, if possible, in the same location. You source for capital for that purpose. At this point you feel you have all it takes to start on a good note. 

However, the truth comes out, rather shockingly. Business is slow, as against the flourishing one you had dreamed of. After two years or so, you are neck deep in debt. Paying the rent and overhead become a big challenge. Gradually, you make up your mind to shut down the business. Well, here are some of the prominent reasons, maybe unknown to you, that were responsible for the factors that led to final close down:

1.       Not enough customers or patronage. Whether you like it or not it takes some time to grow your customer base. Never you think that just because you opened a new business, that customers will automatically patronize you. It is a process, you have to woo your customers. In truth, they already have someone they patronize, so they don’t have enough reason to check yours out. To succeed you have to woo your clients like a lady. 
Also you have to learn how to outsmart the competition
2.       Your  expectation was too high. You expected the business to generate as much profit as possible. This too is a process.
3.       Your business is rather new. Potential customers need time to know and understand you before they can bring any business to you.
4.       You relied heavily on the business to pay all your bills. You probably spent all your profit and even chipping away your capital. This is risky for your infant business.
5.       You probably lack the necessary skills to grow your business
Please drop your comment below, if you had experienced this problem.
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