Reasons why small business fail
Business failure, why your business is going to fail
Studies have shown that most business started is bound to fail within their first year of operation. There are so many reasons why this has to continue happening. Some of the reasons that if not look into will cause your business to close down are the following
- Poor Customer Relations
Your business will improve if and if you have a good relation with your customers. If customers feels that they are not satisfied with how you handle them, be sure that you are going to loose them to your competitors and once this happens you are going to close down. If you can not adjust with how you communicate with your customers in the first few months of opening, then chances are that you will not get new customers
- Poor infrastructure
Bad transportation network will definitely leads tour shop closing window, how are customers going to get to premise without having a car break. With poor road network it means the demand will be higher than the supply if goods cannot reach your business at the right time. You will be loosing your customers to the competitor who will be smiling as you close down your shop
- Culture values and behavior
Starting a small business at a particular location requires that you respects the values and belief of those that are going to buy from you. If the values of the people in the vicinity state that no drinking yet you go a head and open a bar, chances are that your bar will be closed the following details with customers to be complaining of your intended shop
- Influence from families and relatives
In small business, families and relatives might be the cause of failure in that they will be tempted to get goods on credit which they might not see the reasons pay. This will force you get additional income to pay for the goods that you are owned by your families. Failure to do this means your stock will be reducing without restocking
- Small business location
When starting a business, it is much advisable to look for profitable business location, and this can be determine by the way the particular place is developed and whether your products will be offer additional value compare to your competitor. Good business location holds the key to any successful business.
- Quality of products
with poor quality of products, you will loose customers each and every day. The better your products and services are the higher chances of your small business succeeding
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