Being an entrepreneur is not easy and success comes at a cost. Read about top reasons behind business failure or why business fails to survive.
Common business commitment failure
Common business commitment failure is associated with a promise made by existing or new customer and is not fulfilled as agreed. There might be false promises from company itself but that can be a completely different debate. Read on details about after effects of a business commitment failure.
Business loss due to failure commitment
There are many reasons for business loss but business loss due to failure commitment can be disastrous. Imagine a situation where you are almost there to close a deal. You have hired staff to ensure timely delivery of goods or services. There may be raw material purchased due to tight delivery date and suddenly customer says no to the deal. Your business may encounter huge loss causing lot of other related troubles. Read on to at least be aware of possible threats of doing business under these circumstances. Business commitment failure may or may not be financial but surely impacts financial structure of a business.
Customers use unethical practices
Customers use unethical practices to get great discounts on final price. Customers ask companies to do research and get proposals in return. Later these proposals are shared with other vendors. Due to competition in business lower prices are offered and customers choose the best deal. There are times when work is done as per commitments made and customer wants some more but does not want to pay. In this case most of them keep your money with them in order to push you for doing required task.
Business world does not understand emotion
Business is ruthless and harsh and your emotions may force to get out of business. Business world does not understand emotion and your competitors are eager to eat up your share. They are hungry for business and will only care about their own companies. So be like them to survive otherwise, be ready to get wiped off the market.
Creating loyal customers is a myth
Creating loyal customers is a myth and there are not loyal customers in the market. Everyone is looking for ease. Your customers are with you until they get something better. Keep given best value to your existing customers to ensure that they remain with you.
Poor quality control
Poor quality control is like giving slow poison to your business. It is hard to make customers and very easy to lose them. You must ensure that you are maintaining highest possible quality and keep improving it.
Main reasons for business failure can be your best customer
This might look odd but main reasons for business failure can be your best customer. It is seen that in case of long term contracts companies have work commitments with one or two customers only. These customers are the primary source of income and in case of any misunderstanding or breach of contract your business might get its biggest nightmare. So do not rely on single source, try to make many small customers along with them to ensure business survival.