Top ten reasons why business fail

Why business fail 

Every business faces failure and success. This is a part of business. But after every single failure you should examine your organization past progress. As a owner of business it is your duty to find out the failure and fixed as quickly as you can. Because some time small failures becomes big, if you don't fixed them quickly. So it is confusing for you  how can  you determine that where my organization is failing and how can  I find the errors or failures. But don't worry you came in right place we will tell you the Top ten reasons why is your business failing. 

1. Bad cash flow 

If your cash is tied up in unpaid invoices. Like your customer purchase some product of your organization on credit and they  did not paid amount. So it is unpaid invoice. Cash flow is a life blood of your business. It is difficult to survive without cash flow. No matter  if your business is failing or sucessiding you need to maintain cash. 

2. Lack of planning 

Planning plays very important role in every business. In every department of your business you need planning e.g production department, finance , selling and purchasing department. Another question may raise  How you can plan your business? Through a document which is business plan which you creates at time of establishing your business. Even if you still haven't prepare your business plan you can prepare your plan for next 12 months that is what you want to achieve in next 12 months. For making a good plan you have to communicate with all your employees.

3. No performance checking 

After making a plan your organization didn't work automatically. It is a plan not a machine which will work correctly  and automatically. You must check or monitor consistently  your organization progress  by making sure that the progress of organization is satisfying and moving towards the objective of your business and your employees are meeting their potential or not.

4. Lack of insurance

 If you do the insurance for your business insurance is the cover for your damage. So insurance is very important because you don't know what will be going to happen in next day or even next hour. If you don't do insurance the result should be worst. You may find to many insurance company and their insurance policies, adopt the policy which best fit for your organization.

5. Not having knowledge of market 

If you want to become a successful businessman you need to pay attention to changing environments of your target market. Because market is place where you can find what customer want and what your competitors are doing to meet the need of customers.  If you not paying attention to market situation than it will cause your business to be fail. 

6. Not a  having good management 

Management means directing people to do job for achieving organization objectives. It can only be possible  if you hire skilful and experience managers. These people are capable of how they can direct workers for achievement of organization objectives. If your managing staff is not capable then your organization may not succeed.

7.  Insufficient availability of funds 

 Without the availability of funds your business may find it difficult to succeed. If new investment didn't flowing into business, then your company will find it difficult to grow. Even it is not matter that demand for your product may exists. It is hard to get funds from bank in those days but there are alternative sources available like  peer to peer lending and funding market places etc. 

8. Poor location selection 

Remember that you must  have to  establish your business in a location where you think that this type of product is demanded highly if you not establish your business according to location your business may fail. For example if you are establishing a health hospital for human and you establish this hospital in forest then less or  no patients will come to your hospital for treatment as compared establishing a hospital in well populated city.  So do research before selecting your organization location.

9. Not seeking experts help 

Another reason which cause your business to fail is not seeking experts helps. According to survey of national business, businesses experienced 18% better growth rates and better financial management when they take advised from business support organizations. So your organization success is depend upon the advicess you take from other experts of business. Watching economy or business related TV channel or news relating to business you may improve your business.  

10. Lack of  relationship with employees 

If you don't create better relationship with your employees they will not work with full concentration. Because today every organization's owners knows that having good relationship with your employees is good for your organization, they may do job on achieving your organization objectives. They work for betterment of organization like their home. So keep supporting them , appreciate them on their good progress and give them a bonuses etc these types of rewards may make them to work more efficiently. 

So these are top ten Reasons of why business fail you can fixed them to become successful businessman. Your business may not succeed  don't get yourself disappoint just find those failure and fixed them as quickly as you can.