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.