Opinion: Why Many New Businesses Fail?

Some Reasons New Businesses Fail

There are many reasons businesses fail, which can be internal and external. We can solve the internal factors, but the external ones are uncontrollable. So, we focused on the internal aspects that made many new entrepreneurs fail in their businesses. Read until the end or scroll to the end of this article for the best part. Do not stop reading and comprehending until you win.

INCONSISTENCY

Many new business owners do not realize that the majority of customers get disappointed with products/services that taste or feel different from their previous purchase. If they do not come back, there might be something wrong. Ask your customers. Don't be afraid to receive negative criticism because it will bring you more money when used wisely.

How to be consistent?

If you are in the manufacturing industry, set and record the measurements of the raw materials used in making the product. Even big manufacturers do that. How much more for those new entrepreneurs? 

It's more challenging to be consistent in the service industry. Measuring people's performance and maintaining high productivity need great patience and resources. People's performance level varies and depends on the treatment of customers by the provider.

Unscheduled Operations

Customers get mad and find other options if a business is closed when they need it the most. If you do not want to lose a client, make sure you have a specific schedule of your open and close days and hours, stick with that, and inform them if there are changes in the schedule. "Time is gold" is a cliche. How many times should you be reminded of the importance of time?

Successful business owners know the value of time and respect their customers' time. 

Stop wasting others' time and establish your business operation days and hours. Post them outside your store and on other platforms where the public can easily access or find them.

Ignorance

Many start businesses without any knowledge about them. Most (if not all) do it because others are doing well in that business. They did not realize that copycats never succeed most of the time. 

Innovation and strategic implementation are often ignored by many new entrepreneurs.

We are not saying you should not start a business you are ignorant about because you can hire experts, but this will cost you a lot. Before you begin, it's good to learn first to lessen the cost of failure. A famous quote attributed to Abraham Lincoln says,

"If I had four hours to chop down a tree, I’d spend the first two hours sharpening the axe."

Idleness

The common trait of novice entrepreneurs is doing nothing and keeping on waiting. They do not have the perseverance to chase clients, know their needs or wants and improve their products/services accordingly.

Running a business is a continuous endeavor. It must evolve to be sustainable. The wants and needs of people change over time. Thus, entrepreneurs and their people must learn to adapt to survive and thrive.

May fortune favor all the striving entrepreneurs.

Suggested Articles to Read 

Stop the idleness. Start learning more about business development. We are not a fan of spoon-feeding because it breeds laziness. We quoted some phrases from the book Think and Grow Rich by Napoleon Hill to be more convincing.

"Success begins with a fellow's will--"

 

"...prepared the way for success by a BURNING DESIRE for success."

 

"Successful men, in all callings, never stop acquiring specialized knowledge related to their major purpose, business, or profession. Those who are not successful usually make the mistake of believing that the knowledge-acquiring period ends when one finishes schooling."

"The way of success is the way of continuous pursuit of knowledge."

"Specialized knowledge, plus imagination, were the ingredients that went into this unique and successful business." 

"The beginning of this successful business was an IDEA."

Below is a list of articles sharing ways new entrepreneurs can get a loan to improve their businesses or fund feasible innovations and ideas.

 

How To Get a Government Loan for Small Businesses in the Philippines - FilipiKnow

MSME Financing Programs | Small Business Corporation (sbcorp.gov.ph)

Digital bank, lender team up to loan to small stores | Roderick Abad (businessmirror.com.ph)

18 Best Business Loans in the Philippines – Grit PH

Startup Business Loans to Consider for Your Business Needs (moneymax.ph)