Every businessman dreams of making a profit business, but not everyone can make a profit business, why? Obviously, as readers have already learned from the business practices of many entrepreneurs, both local and foreign, that there are some individuals who start a small business then grown up bigger and bigger with their business expansion to different location while some businessmen jump started with the business relentlessly, trampling on failures, losing achievements, building almost nothing because of wrong decisions, wrong actions, and so on.
Here’re 7 Big Reasons Why Most Businesses Fail:
1. Uncertain business
Going out of business for no apparent reason, such as doing business by seeing people do what they follow or just doing what they want to do. Doing business like this does not have to be serious and even turn your own business up and down quickly. However, if you turn your attention to the potential of big business around the world, it takes at least 5 to 7 years for the business to stand on the global market.
2. Choosing the wrong location
Most local small business owners prefer to use their home location as a place to do business, and it is only right if their home is in a downtown area or suitable for their business. In particular, it may make him sell all day long while the location is not conducive to his business. After all, if you look at some of the most famous coffee shops in the country, such as coffee shops and famous clothing stores, all dare to pay rent for good locations, no matter how expensive, as long as their business grows and is in Customer-rich areas.
3. Weak management
Management is the very foundation of running a business, but if the business owner does not have this point, the business will never move forward. So why management? At this point, he wants to show that business management is a factor that requires the business to be in proportion to the market demand to meet the needs of customers to make the business does not lose customers.
4. Lack of financial skills
If a business owner is financially weak, it is very easy to lose money. Because they do not know how to use the money for the benefit of the business, do not know what to spend first, what to do next, this factor causes the business for a long time, no money left, only debt.
5. No clear business plan
Business without a plan is like people working without a goal. Before starting a business, what business owners think about the most is the business plan, how to go about it, how to develop a strategy to gradually evolve until it can grow bigger.
6. Lack of marketing strategy
When it comes to business marketing, a few years ago, most small businesses distributed leaflets at traffic lights with low capital costs. But until now, it is not certain that this method will still be effective. Because as you already know, people today live with technology, connect life with modernity, so what every business owner should do now is to advertise through the Internet, you can take a pack or Any well-known website helps to publish or can advertise itself by creating a Facebook Page or Youtube Channel.
7. Fast business expansion
The biggest mistake of business owners is to expand too fast, even if they are not strong enough yet. Or even if the business is making profit as estimated, you should not immediately expand it yet because it can make the management out of control, causing the business to collapse. On the other hand, a business should start small, if you have little experience, almost have no skills, and doing so, your business will live long, not easy to collapse, on the contrary, if it fails, the loss is not so serious.