Why Do Businesses Fail?

Today we are getting right to the good stuff my friends. Everyone is always talking about how to start a successful business well, today we are getting into the does businesses even fail. A smart person once said “a smart person learns from their mistakes, but a wise man learns from other mistakes “.  So, let’s jump into some of these mistakes my friends.

Not having a competitive advantage

Not having a competitive advantage

When you first start a business, you should have done your homework on your competition my friends. You need to know what the good at and where they are weak/need improvement. You take that information and use it to your advantage. Not doing this will likely lead to failure my friends. Know your competition weakness should give you a competitive advantage.

Not having a strategy

  Not having a strategy

If you don’t have a strategy going into business, what are you doing going into business? You need to have a plan for success. You will need a strategy for the future if the business grows beyond your idea of success. Not having a strategy is another result of failure.

Not understanding your market needs.

  Not understanding your market needs.

Don’t go open up a coffee shop when your place of business is surrounded by a Starbucks and 2 neighborhood coffee shops. Instead, you should be opening a donut shop. You not understanding your market is crazy my friends. Research your market before you get to far ahead of yourself my friends, or failure maybe in your future.

Lacking in business acumen

  Lacking in business acumen

Not really understanding how businesses is should be done or ran can be a huge factor in the success of your business. And people who start businesses with a lack of business acumen most likely will fail.

Hiring the wrong people

Hiring the wrong people

Let me tell you a TRUE story my friends. I lived in a place that wasn’t so nice. Anyway, one day someone decided to open a Burger King across the street. And they hired a lot of people from my neighborhood. My friend’s people were selling frozen burger patties out the back door. True story my friends, the business was gone in no time. So, making that mistake will definitely have your business closed.

Growing too fast

Growing too fast

Sometimes your success can be your failure my friends. Scaling too fast can be bad if you’re not ready for it my friends. That’s a scary truth that.

Not being able to adapt

Not being able to adapt

If you have a clothing store you will have to adapt to what people are looking for. Meaning you might have to find new vendors or step of your creativeness. But you have to adapt, if not close up shop my friends.

Doing too much

Doing too much

Trying to do too much can be a downfall for sure. You need to be able to do one thing really well. Trying to do too much with low quality is not a plan for success.

No passion for what your doing

No passion for what you’re doing.

If you don’t enjoy what you’re doing, it will be easier to give up on what your doing my friends. Starting a business will be hard enough you should at least enjoy the ride my friends.

Fear

Fear

That’s right my friends fear can kill the dream before you even go to sleep. It’s scary jump into something new or putting yourself out there. No risk no reward my friends.

Summary

  There you have it my friends because businesses fail. This sounds like a negative title but writing this motivated me! I want to do more now, go harder, and face my fears. I hope this gave you this same feeling out there. As always research my friends before you do anything. Good luck.