Ask Leo: Why businesses fail

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The desire of every entrepreneur is not to fail in business rather for maximising profit.
You don't just start a business with the sole aim of not succeeding but very optimistic for financial growth but the question is why do most business fail? I will share about four reasons I discovered that makes some businesses fail. These includes;

• PUBLICITY/MARKETING.
  I think one of the significant factor that sustains a business is the ability to maintain good marketing and publicity strategy. When you have a good product and services with no good marketing method set in place, it would affect the growth of the business. I have seen some organisations and companies that don't good product to offer however because of their strong marketing people tend to patronage them more. When you lack this certainly the business will soon collapsed. You may use magazine, radio, television for your advertisement.
• INADEQUATE BUSINESS PLAN.
  As I normally say, a plan is a road map that directs, guides an entrepreneur to start to finish of a business. There are lots of distraction but this can be tamed when you plan properly. In business plan, at least you cover all the potential risks and expenditure over a particular period of time. When you don't plan then you plan to fail.
• LACK OF GOOD MANAGEMENT.
  One of the fulcrum of business is the ability to manage the available resources to achieve uncommon results. Organisation that don't good management folds easily. When the management fails surely it will permeate through the whole business.
• FINANCIAL CHALLENGES.
  No matter how the business is challenges must come. What builds the business is challenges. No challenge no champion. When you don't handle your business challenges effectively would affect your productivity and efficiency if not identified will ruin your business. Any challenge identified, try to proffer solution to avoid any failure.

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