Wednesday, August 2, 2017

8 Things To Avoid To Escape Business Failure

With the trending economic situation, many businesses have failed. Regardless, many of the causes of business failure can be prevented. Do you want to know things to avoid?

These causes shared by Jumia Travel will help you put together a plan to make sure your business is around for decades.

Lack of experience 
Lack of experience is one of the causes of business failure. If you are inexperienced or your management is made up of novices, then your business is likely to fail. When starting a new business, it is advised you get the services of people experienced in that field.

No accountability 
Some people throw accountability into the dustbin because they own the business, Hence, there is no difference between their personal money and business money. They simply spend. You must be accountable for any kobo your business spend and makes.

Poor location 
You cannot start a business where the service is not needed. Making it classy will not make people patronise you. A good market survey is required before a business location is chosen.

Failure to understand your market and customers 
It’s important that you understand your market and customers buying habits. Answering questions about who your customers are and how much they are willing to spend.

Overdependence on a single customer 
If your biggest customer walked out the door and never returned, your organisation or business may be done for. Hence, do not rely on a single customer. Try as much as possible to diversify your customer base.

Copying others 
What worked for Mr A may not work for Mr B. Many people have gone into business or made a business choice because they see others doing it and think they can be successful in it if they try. It is good you add your own idea after proper consultation, that will make you different.

Quitting too soon 
Giving up too early is the biggest reason why many businesses fail. If you do not persist, research, fail and try and try again, you might not be successful in business.

Inadequate financing 
A business will definitely fail if there is no cash flow. Your business needs a steady cash flow to take it through its day to day running.



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