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Tuesday, August 25, 2015

12 Factors Make Your New Business Fails !.

As mentioned before that only about half of new small businesses will survive 5 years. Here are some of the factors that often contribute to a new business’s failure and must be taken into consideration during planning a new business:-

  1. Lack of capital, often due to poor planning or unexpected costs.
  2. Poor cash flow management.
  3. Unexpected market factors-growth or reduction in market size.
  4. Underestimating the competition.
  5. New entrants to the market.
  6. Technological problems.
  7. Not having a strong business plan in place.
  8. Lack of understanding of the market.
  9. Poor advertising or marketing.
  10. Weak product.
  11. lack of selling and marketing expertise.
  12. over trading or over expansion.
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