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10 Reasons why Businesses Fail1. Insufficient Working Capital It is crucial for businesses to have a financial cushion especially in the start-up phase. Ever changing markets can take many unexpected turns which make financial reserves a must. Biz Guru will work with you to identify your likely start up costs. 2. Lack of an Introspective Business Plan The markets are living, breathing environments and are constantly growing and changing shape; for this reason, the business plan must include some kind of visionary look into the future and how the company can adapt to the needs of the future. We will work with you to identify your markets and encourage you to continually revisit our research. 3. Inopportune Strategic Planning The company must create goals that are realistic but precise. The business plan should be consulted regularly so that the employees are clear on what their responsibilities are and the direction of the company. 4. Inability to Market Products and/or Services Effectively If a company is unable to penetrate its market, steadily increase awareness, and effectively market their product then all the other strengths of the company are useless. Your Biz Guru business plan will include a marketing strategy, outlining how to find and establish your market. 5. Overwhelming Competition Competition can be brutal; it is crucial that a company have a strong understanding of their market and be able to develop a niche that gives them a competitive advantage. 6. Failure to Control Costs It is important to develop a system of accounting for costs embedded in company operations; then, management can control costs effectively and provide incentives to employees to increase production and efficiency. 7. Inadequate Financial Records A current and accurate log of the money available and owed is crucial to keeping any business afloat. 8. Poor Customer Relations Customers keep a business viable; therefore, it is crucial to keep them satisfied for repeated business and good references. 9. Inability to Maintain Quality Control Quality of product or service is something that must remain consistently high. Inconsistencies in quality have a tendency to spread and eat away at companies slowly but surely. 10. Lack of Proper Internal Communication Management must share a healthy avenue of communication with employees so that common goals are clearly defined and constructive criticism is useful.
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