Why small businesses fail?

(Arshad Mirza, Lahore)

Most of the businessmen failed in business and become suffered from a huge unrecoverable loss. This article can help those businessmen to run a safe business. I have focused on some deadly mistakes made by new businessmen.

1. Mistake in managing:
While starting a business, management plays a primary role to raise the business to boom. Poor management can ruin the business.

2. Deficiency in experience:
Many businesses failed because the owner or entrepreneur does not have enough experience in that field. Most of the people who start business after a job without having a suitable experience become fed up and left the business field with a lot of debt in their pockets.

3. Terrible financial control:
Mostly businesses failed because they have very poor financial control like managing cost, salaries etc.

4. Unsatisfactory marketing:
Now for running a business, only management and finance are not enough. Marketing is a backbone of any business to introduce and build it.

5. Vague tactical plan:
Mostly businesses neglect strategic planning by saying that they do not have time or business is too small for developing a strategic plan. However, the fact is that without a proper strategic planning a business cannot get a way to go on.

6. Inappropriate location:
Location must be appropriate and attractive to customers. Location must also be reachable to buyers. Poor site results in the downfall of the business.

7. Pricing problems:
Price plays an important role in attracting the customer. A very high price or a very low price with low quality is a most critical portion of the small businessmen. Price must be stable and economical.

8. Out-of-control growth:
This one might be the depressing of all reasons for failure. A flourishing business that is ruined by over-expansion.
Hope this article can help small businessmen for running a good business and make it more profitable.
 

Arshad Mirza
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