5 Reasons Why Businesses Fail
← Management: Casinos | Business and Economics → |
Statistics show that only in the U.S. more than half of newly created small businesses cease to exist in the first few years. Of course, these data are quite capable to scare even the most confident. However, it should not be forgotten that the majority of such failures are very similar (Shelly, n.d.). Therefore, this paper is aimed to discuss five major reasons of businesses failures, because it is rather necessary to understand them in order to avoid similar hindrances while conducting their own business.
The first one is related to the ignorance of the competition. In recent years, the degree of customer loyalty was significantly reduced. Now the buyer goes to places where he/she would be given the best products at the best prices, therefore, they easily break the previous long-term business relationship for better and more interesting offer. Business owners should not lose sight of competitors and hesitate to learn from their most successful ideas; he/she can also copy the most brilliant ideas from the competitors, of course, without violating patent laws. In addition, on a weekly or monthly basis the director or the owner of the business should allocate some time to development of new methods, new product or a new service for his/her company in order to make it more competitive with unique value proposition.
The second cause relates to the low effectiveness of marketing. Regardless of the very common stereotype that there is now almost no services and products that can sell themselves, it is very good that a certain type of business is one of those who can, however, the majority of commerce centers need to have effective marketing strategy in order to improve sales performance. In order to make sales effective and generate money for business needs, products have to be well-publicized. If the business owner or the director simply does not have free time to engage in marketing activities, then it is needed to hire a qualified person for this. Effective and efficient marketing can sell the product by itself, getting money for the business development and performance. Therefore, it is extremely important for marketing to be on a high level.
The third reason plays a crucial role in business performance and it is the neglect of the needs of customers. If the company managed to attract customers, there should be a lot of hard, continuous, based on the researches and effective work in order to keep them in the future. Customer service should be admitted to the rank of the key aspects of business performance. If the owner and his/her employees do not do that, buyers will find someone who will give them what they want. Thus, for the successful business performance it is needed not only engagement, but also retention of the potential clients and regular once. However, depending on the sphere of the current business performance, sometimes it is more necessary to concentrate on the people who are already the regular customers of the company than to pay money for those who maybe in the future would became the company’s clients or visitors. This theory is approved by the experience of definite small business companies who are working in the luxury segment.
The next reason is crucial for every company because only some of them are working without hired labor. Therefore, incompetent staff hiring is the next reason of businesses failures. Employees are the people who are directly contacting with the company’s clients, they play the role of the facilitator between company and its customers (Ingebretsen, 2003). If the employees are poorly proficient, low motivated and ineffective, customers will find another place where they would be perfectly served and spend their money there. It is important to hire highly-qualified employees as they are needed for the various business processes. If somebody is taken for the work, it will be necessary to make sure that this person is really well prepared and can competently and efficiently handle all the tasks.
The last one but not the least important cause is connected with the absence of deliberate and well prepared plan of action. The business is a high-risk thing. During the business performance the owner or the director often faces all sorts of obstacles that can hinder the development of the business, or even expel him/her from it. For the majority for risk assessment and maximisation of business protection from the unexpected obstacles it is needed to develop the business strategy or create detailed business plan (Pease, 2010). In this case, the occurrence of unexpected, unwanted and unplanned circumstances will not cause any problems for effective business performance. It is also desirable to develop a backup plan in case of business ineffectiveness and unprofitability. However, even the existence of a deliberate plan of action does not fully insure the business. Having a detailed plan can help business owner to operate more effectively and change more quickly. Any effective change (improvement, corrections) in business must be performed step by step, point by point, and brought to its logical conclusion to bring as much profit as definite segment has.
Starting own business, inexperienced entrepreneurs often do not even think about how many obstacles can appear on their way. Problems appear like mushrooms after the rain, not only in the initial stage of business development but also during the growth of the company that is quite stable, causing considerable damage to the case. A business person needs to understand that a trouble does not arise out of nothing, that they are, above all, the result of personal neglect and lack of experience. Unfortunately, to completely avoid flaws in business is not feasible, but knowing about the most common of these can protect the one from the failures. The way to success is not so thorny if it is known what barriers are needed to pass.
Buy papers on business from our essay writers and get the original and premium-class papers!
- Business and Economics
- Digital Marketing
- Management: Casinos
- The Financial System and the Level of Interest Rates
Sharon Q.
Lexington, OK
|
|
|
Working with your writers is always such a pleasure. Thanks again. |
Sarah H.
Brooklyn, NY
|
|
|
As always, I can count on EssaysEmpire.com to never let me down. I had to place an emergency order and was worried that I had not given the writer enough time to do a good job. I was wrong. They did a tremendous job! Thanks ever so much! |
Louise O.
Oakland, CA.
|
|
|
The A+ that I got on the paper that I ordered from you, helped boost my grade up an entire letter grade! Thanks, EssaysEmpire.com! |
Stephanie K.
Stowe, VT
|
|
|
Dear Sirs: Just a quick note to let you know that I appreciate your working on my paper so quickly. I did get it in time to turn it in for the deadline, even though I hadn’t given you much notice. I made a very good grade on it and was much relieved. Thanks again. You rock. |
Thomas C.
Louisville, KY
|
|
|
I loved the paper that your writers helped me with. They wrote from a very interesting perspective that I had never even considered. My teacher was happy with the work, and so was I. Thank you very much. |
Zola R.
Salulita, MX
|
|
|
The paper that I bought from EssaysEmpire.com was a whole lot better than I thought it would be. Thank you for the excellent service and product. I will be happy to recommend you to my friends. |
Katy A.
London, England
|
|
|
Your writers are very good at what they do. I would recommend your service to anyone. It is impressive and it doesn’t cost too much. |
Tom J.
Jackson, MI
|
|
|
Many thanks to your writers and customer service representatives for helping me get through a very difficult time in my college career. I needed writing assistance and your crew came through for me, big time! My papers were written impeccably. Thanks so much! |
Phoebe K.
Madison, CT
|
|
|
I find your writing company to be professional, proficient and perfect. Your papers are always so good! They make good reading, in addition to being well written assignments. I can tell your writers really know their stuff! |
Sylvia S.
Ardmore, OK
|
|
|
Dear EssaysEmpire.com, Over the last couple of years, I have used your writing service for a total of five times. I have never had the same writer twice, but I have had excellent results with the writers who were assigned to my projects. I could easily recommend you guys. You’re the greatest! |
Kyle N.
Tempe, AZ
|
|
|
Dear Sirs: I have just placed my third order from EssaysEmpire.com this term. I feel confident that my paper will be written on time and that the quality of it will be out of the ballpark. The first two papers I ordered from you got A+ marks, and I know this one will, too. It is so great to be able to sit back and concern myself with my reading and exams while you do the difficult writing projects for me. That is really great. You guys are a class act! |
Bruce R.
Tulsa, OK
|
|
|
Thanks for everything. You guys know how to write so well! I will call on you again in the future. |
Fred H.
Berkeley, CA
|
|
|
Thank you for doing what you do. You helped a lot of my friends, and now you have helped me. You provide a valuable service to students who need to get over writing hurdles. |
Mark R.
Seattle, WA
|
|
|
I am so happy with my term paper. The writer did a spectacular job!! Thanks to the writing team and also to the customer service team. |
Glynnis H.
Ft. Smith, AR
|
|
|
Hello! I just had to stop what I was doing to let you know how grateful I am that I found your excellent writing service. I have had to use you three times now, and each time, I have been 100% satisfied with the work that you did. Your writers are absolutely outstanding. I am very, very happy with everything you have written for me. |
Kaylie B.
Casper, WY
|
|
|
Thank you, EssaysEmpire.com, for being the one writing service that I can always depend upon. You are reliable, honest and you do great work. I have been happy with every order I have placed with you |
Mark M.
Cambridge, MA
|
|
|
The paper I ordered from EssaysEmpire.com is incomparable! Thanks for doing such stellar work. I have recommended your services to a few other folks who plan to try you out soon. EssaysEmpire.com gets my vote for best writing service every time. |
Jeff M.
Baltimore, MD
|
|
|
I would like to commend your excellent writers for a job well done. They followed my directions to a tee. Thank you, EssaysEmpire.com for being who you are and for doing what you do. There is no better writing service anywhere. |
Sharon S.
Dallas, TX
|
|
|
I greatly appreciate your assistance. Writing has never been my strong point. When I needed help, EssaysEmpire.com gave it to me. I am completely satisfied! |
Bruce B.
Purcell, OK
|
|
|
I had a hard time articulating what my professor wanted, so I was able to speak straight to my writer. After I had explained a little bit, I could tell he understood everything. He then took the ball and ran with it, so to speak. He wrote my paper in two days and it was the picture of perfection! I am very grateful that he knew what to do and how to do it so perfectly. |