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Why Businesses Fail

Often not failing is down to simple plain luck, however success is never that easy.  The table below shows a list compiled from various experts on why businesses fail and this is then compare with what we do on the coaching side of My Business Advice.

At My Business Advice we believe that success is more than not making mistakes. You don’t have to find out what works and does not work by trial and error, or luck. With the knowledge about why businesses fail you will have the strategies you need to be successful in any business.

Failing Businesses Do

Successful Businesses Do

1. Lack of Planning

– No or poor business plans
– Inability to define viable business model
– Poor research into target market
– Wrong reason for starting business
– Poor location
– Lack of a defined USP
– Lack of clear objectives
– Thinks only short-term
– Inability to adapt

6 Steps To Great Business

– Actionable plans
– Viable products
– Know what the customer wants
– Defined reason to start, motivated to succeed
– Great location
– Defined why customer should buy from them
– Works towards a defined set of goals
– Thinks long-term
– Adapts quickly to change
– Thinks outside of the box
– Focus on what company does well
– Focus on customer service
– Focus on creating ‘Raving Fans’
– Clear vision / brand for the business
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2. Poor Financial Management

– Lack of capital to finance business
– Lack of knowledge on costs / margins
– Inability to control cash flow

6 Steps To Great Profits

– Sufficient capital to start and sustain business
– Knows all costs / margins
– Firm grip on budgets and cash flow
– Identifies new / niche markets (high margins)
– Constant improvement
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3. Poor Systems

– Lack of defined processes and procedures
– Failure to embrace modern technology
– Poor time management
– Uncontrolled growth

6 Steps To Work Less

– Defined processes and procedures
– Embrace ideas to leverage business
– Good time management, knows to delegate
– Robust business structure to cope with growth
– Focuses on results
– Know all business KPIs
– Constant improvement
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4. Poor Leadership

– Poor decision making
– Dissatisfied employees
– Lack of knowledge about business

6 Steps To Great Teams

– Informed decision making
– Efficient team that enjoys coming to work
– Lifetime learner
– Recognises and welcomes change
– Mindset of a successful business person
– Great personal standards (Role Model)
– Ability to communicate
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