Two Steps To Avoid Business Failure

Only a small fraction of companies reached their 10th anniversary! In fact, according to some sources (for example, Michael E. Gerber), only 4% of companies will do so. 

So why did not do it?

According to a recent study, the 10 main reasons for business failure are as follows:

  • Insufficient capital

  • Wrong place

  • Bad stock management

  • Over-investment in fixed assets

  • Bad credit arrangements

  • Personal use of corporate funds

  • Unexpected growth

  • Competition

  • Low sales

As they say, if you know the cause of a problem, you are more than half of the resolution. So, as a business owner, what should you do about it? On the basis of the list above, here is a two-step formula for business success.

Business Success Strategy # 1: Ask for help

Based on inexperience being the number one cause of business failures, this is the best place to start. In fact, inexperience can be emphasized as the first cause of many people, if not all, “reasons” on this list.

Failure due to inexperience is how we learn and acquire experience. So, it’s good if you hire an IT consultant .

Business Success Strategy # 2: Send in-depth market

Good market research is essential to succeed in business and inexperience can lead to loss of your business. 

Starting with insufficient money, from the wrong place, having the bad level of inventory types, not anticipating the effects of competition and probable levels of sale can all be estimated better with good marketing studies.

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