Failure of business : Top 10 Reasons Behind Failure Of Business.
10 Reasons Behind Failure Of Business. | Business Development/Solution #01.
These are the 10 points if you consider then it will help you and your startup or company to next level a high speed.
these are as follow:-
1. Lack of market need.
2. Lack of cash
3. Wrong team
4. Too much competition
5. Pricing Issue
6. Poor Product & services
7. Business model
8. Ineffective marketing
9. Not customer centric
10. Poor timing
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Failure of business, hello everyone in this post i will tell you why many business fail while they are starting up. So here are the top 10 reason behind failure of business.
Let see what those point we should remember while starting any new business.
Lack Of Market Need.
Lack Of Cash.
Too Much Competition.
Poor Product & Services.
Not Customer Centric.
1. LACK OF MARKET NEED.
Whenever we setup our new business in the marketing at that time we make sure that our product & services must have some USP (Unique Selling Point). with the help of our USP we can create place of our company by showing our product & services.
Example:- there are many soap available and the primary work all soap are same but the USP of al soap are different no one is similar to each other it is different on smell. looks, packaging etc.
2. LACK OF CASH.
Whenever we launch or new product and services we make sure we have sufficient amount of money as backup finance according to study it should be 20% of your total investment so it will give you an security for future insecurity.
3. WRONG TEAM.
Most of us make maximum mistake on this point very frequently. In starting any business we must consider only relevant work experience people who are ready to give you some commitment on there work specially on marketing side or marketing people.
Because in starting point there is no chance to accepting failure due to business is not setup till now and not even working condition. So make sure you people who can achieve goal as per your business startup.
4. TOO MUCH COMPETITION.
At the time when we develop our product & services at that point we must complete our R&D (research & Development) on our product & services and if you found that market is saturated or almost saturated for the product & services which you are going to make or develop then at this stage the chances of getting failure more in the actual market.
5. PRICING ISSUE.
In developing country price influence are main thing that your customer consider always. so you product & services price must according to your competitor product & services prices so you can give them strong competition in market.
6. POOR PRODUCT & SERVICES.
Now a days we can see in most startups that initially they just want to sell there product & services which is good put at this stage they forget to give quality in there product and services on the product after sales which can work for very short time period and after some time result will be a failure.
7. BUSINESS MODEL.
Your business model must be meaningful. You must make a some plan which supporting to your main business model and whenever you make any business plan make sure future is uncertain and your business plan & model must be according to that only.
8. INEFFECTIVE MARKETING.
One of the main thing you need to consider is that whatever you do in the name of marketing it must be effective because in marketing it need good amount of finance so you must take care of this part also.
9. NOT CUSTOMER CENTRIC.
Just take some time and think about your product & services and ask yourself that what kind problem is solving by your product & services. If your inner soul say that your product & services is not solving any issue of there buyer then i can bet on it that your will be sold in the market at all. so care make some product which is customer centric first.
10. POOR TIMING.
Let take as example about poor timing just suppose you have a garment shop you are sell of selling ready made garments but on the side in winter you are trying to sell summer cloth so at this time your cloth not going to be sold because in winter all people need some warm cloth which can give them warmth in cold weather. So like the same no matter what kind of quality of your product is but good timing is also very much important.