It is often heard that more than half of new businesses fail within the first year. But according to the Small Business Association (SBA), 4 percent of the business is in the first year, 1 business is in the 2nd year to the 5th year. The remaining 20 businesses can successfully carry out business activities.
Those who have enough money and management skills to do the right business, plan, support, can be right. In today’s article, here are five reasons why a new business might fail. Let’s not know what the reasons are –
# 1 Do not monitor the market
This is one of the main reasons why a new business is failing. You can’t start a new business without having to properly monitor the market. If you do not check the demand of the product you are trying to market, you will not be able to succeed in business. Find out what else is occupying the market with this product.
2 # Avoiding problems in business planning
Realistic business planning is the cornerstone of successful business. A business plan can meet the outline of what is the real goal, how to reach that goal and what the potential problems are and how to solve the potential problem.
If you omit one thing in the business plan, either willingly or unwillingly, the business can fail. So it is important to do business with serious business planning. Read More – That is the skill that a business should have
# 1 Starting a Business With Low Money
It is good to start a business with real money at the beginning of business. You can always leave some money as support. It’s not worth investing all the money you have at one time. So you have to go ahead with the allocation of money as per the plan.
# 3 Bad position
The location of the business, also known as the business location. It would not be fair to start a business in a location where there is not enough communication, electricity, water supply. It is important to have a specialized internet service in the area.
# 1 Extra cost
At the beginning, don’t mention the extra cost. No more than 5 rupees can be spent from the requirement. Write down the daily expenses, calculate the expense at the end of the day or the week. Do not move the business too quickly without having to expand the business. Many good wishes.