In the recent times establishing a successful business is the most challenging job for every one. The competitions in business grow day by day. On the other hand, the buying capacity of the buyers remains more or less constant. Thus, for the same price, the customers now get a wide collection of similar products and services.
That is why it is important for every businessman to make a proper plan for his business and its propagation, otherwise it will never be possible to run the business successfully.
Generally, most of the small business owners or small business organizations do not prepare any plan beforehand on how to run the business successfully. They are even reluctant to adopt new ideas and methods which might help their venture grow by leaps and bounds.
A small business can become unsuccessful due to various factors. In this article we discuss some vital reasons which are directly responsible for the failure of a business.
Reason no.1 – Insufficient Infusion of Capital
Capital investment is the most essential part of every business. It is the fuel that helps the business run successfully. Sometimes many businesses offer potential buyers, but the business owners are not able to produce sufficient quantity of commodity as per order or even cannot purchase enough raw materials due to lack of financial strength. Besides this it is never possible to develop the business further due to insufficient capital.
That is why it is very important for every businessman to plan properly the investment required as per the nature of the business before he sets it up.
Reason no.2 – Select Appropriate Commodity or Service and Market
Selection of the right commodity or service and the potential market is another important part of a business. Almost in all cases, the growth of a business depends a lot on the commodity or the service. That is why it is essential that the right commodity or service is selected which serves the customers of that particular area where the business is to be set up.
Photo Credit: Embracingmyjourney.com
In many businesses the owners have made sufficient investment but they are not successful because they market a product which is inappropriate for the customers of the particular place where the business has been set up. For instance, if you decide to open a hardware shop in a clothing mall, or a grocery shop in an area that sell electronic goods, the chances are high that your business will turn out be a failure due to incorrect selection of goods for an inappropriate market.
Reason no.3 – Lack of Marketing Expertise
The growth of a majority of businesses depends on the marketing strategy. That is way it is very important for every business to have proper knowledge of the marketing strategy to sell the product successfully. If you do not have sufficient knowledge about marketing strategy then you must try to hire some skilled marketing personnel as they will market your products successfully in the right market.
But if you have your own idea and skill, it is always better if you can market your products yourself. You must try to find various effective ways to market your products through advertisements, direct marketing, trade shows or exhibition etc. You can also hire some marketing agency to market your products.
Photo Credit: Wjb-cpa.typepad.com