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Reasons why companies fail

Reasons why companies fail

There are many reasons why companies fail, but the most common reasons are:

  • Inadequate time and effort devoted to planning, if any at all
  • The absence of a business plan
  • Lack of cash due to poor cash flow management

Other common reasons for business failure include:

  • Insufficient capital
  • Wrong business model
  • Wrong marketing strategy
  • Poor execution
  • Lack of focus
  • Poor understanding of the market and customer needs
  • Trying to sell something no-one needs
  • Gap in the market but no market in the gap
  • Wrong location
  • Underestimating the competition or competitive response
  • Absence of any marketing investment i.e. best kept secret
  • Wasting money on ineffective marketing
  • Over optimism and unrealistic expectations i.e. biting off more than you can chew
  • Underestimating the time and effort required for success
  • Preoccupied with doing the do rather than focusing on what really matters
  • Failure to plan and manage growth effectively i.e. grow too fast too soon
  • Over reliance on a few customers
  • Over reliance on one form of marketing
  • Complacency

To discuss your business critical issue

Please call Paul New on 020 8390 9972 or 07790 501225 or send a message.

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To discuss your business critical issue, please call Paul New on 020 8390 9972 or 07790 501225 or send a message.


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