Why Many Businesses Fail

Research suggest that 70% of the businesses either donot grow at all or remain stagnant. Most of the businesses fail in the first year because the entrepreneur either doesn't have those qualities, or makes one of the following mistakes.

These with some solutions are follow:

No Business Plan:

or if they have a proper business plan they hardly follow its outlines.

Rapid Expansion:

Taking on more business than an entrepreneur can actually handle, and without making sure the limits of the customers and more importantly don't letting the customers to understand the limits of own business. One of the other more common mistake a infant and growing company makes is trying to appear bigger than they are by hiring too many employees, and getting a plush office. This can easily lead into the third cause of failure that is

Running out of Money:
One of the best solution of it is to have an accountant who is 'rock star' that you talk to often. If they can't obtain angel funding or other investment, they must then consider for a small business loan.

Not having a solid marketing plan:

Be sure to have a firm grasp on competitors strategies with a solid understanding of their business and marketing plans, and a large enough budget to experiment with different marketing tactics.

Not creating a distinct brand:
Who are you? What makes you unique?
Bringing with something in service or product that stick in the mind of customer.

Not being Passionate:
If the business doesn't excite up front, an entrepreneur must to take some extra push that it takes to break through to success.

Being a quitter:
Some of the most successful businesses have started out as failures. If something isn't working be adept to change, rethink, remold, and redeploy. Biggest failure is when stop trying or making effort.

References

• Carolyn Henderson *Top 10 Reasons why New Businesses Fail *
• Bader Dr., Grand