Its almost common to see a start up rise from nowhere but shut down much before you had expected them to do so. Businesses set up and 80% of them face a closure sooner than one can imagine. There could be many reasons why a company is brought to a point where it deems itself as a failure. While most people do not have the ability to question themselves and figure out the reasons of what happened, there are some who analyse this and convert the failure into a roaring comeback.
1. Lack of innovation in the product or service
With technical advancements, social media, globalization and everything progressing forward, a business cannot get stagnant. You have to keep innovating. Little tweaking every now and then, revamping and giving an uplift to what your customers are getting already isn;t a choice, but a necessity. If you got to run the marathon, you need to have thee sensibility to look out for the twists and turns.
2. Unskilled employees
Your employees are your assets. It is these people that build the essence of your brand. If they are not well versed with what they have been hired for, consider your army as the weak link. They need to have a dynamic attitude to keep up with the progressive world. Their progress is the most important factor to ensure your organisation’s success.
3. Incompetent Management
The managers connect the client demands with the work force that is actually producing things for your clients. If your managers cannot handle your employees, or understand what the client really demands, there will be a complete disconnect. It would eventually lead to a mutual frustration and an unhappy environment.
4. Less Serious Business owners
One cannot rule out the importance of the top level bosses in the progress of the business. If you are the director or the owner, it is our baby. No One can long for its success more than you do. But in some cases, owners get entangled with two too many things and chose to ignore the organisations that interest them the least. A boat without a navigator cannot reach its shores; its a given!
5. Obsolete ideas
One cannot do much if your business ideas have become obsolete or if the main skill that was employed for your business’ working is no more in use. Its a fail for sure. You could, although revive it by adapting to what’s new.
6. No scope of profitability in the future
There may come times when the owner can clearly foresee the doom of a market, where the profits are going to vanish. There isn;t much one can do about it except for finding alternatives to the practices that you are employing presently.
8. No dialogues with the customer to understand their requirements
Communication with your end customer is of utmost importance. Everything is on one side and interacting with your user base for understanding the requirements is on the other. Up until you are ready to do this, you can never aim to sustain, let alone succeed.
James Watson used to blog for a medical tourism website and wrote an ebook on assistance to find the best medical facilities for a heart transplant. In the past he has also worked as a networking consultant for Real Estate Agents London.