Why Businesses Fail
Every year thousands of businesses fail. Many of them fail in there first 3 years. Why is this so? Why businesses fail? – is an interesting question.
Why businesses fail – the wrong reasons
You will hear people say that they failed because they didn’t have sufficient capital, the owners lacked experience, the owners were not positive enough, the competition was too severe and so on. Are these the real reasons? They may be contributing factors but these are problems that could have been overcome and allowed the business to continue they are not real reasons why businesses fail.
Why businesses fail – the real reason
Here is the real reason why businesses fail. They quit! Yes that is the reason. People start businesses and sure they hit problems, they may have cash difficulties but rather than look for a way to beat the problem – they quit. Starting a business is often the easy part, that is why there are so many new start ups every year. Having the tenacity to keep going is an entirely different matter. It is easy to start and even easier to quit.
When you decide to start a business you must therefore think about you as a person. Are you a quitter? Do you start something and when it gets difficult or time consuming quit? Perhaps you have started courses and quit half way through or started an exercise regime and quit as it got harder or you didn’t like spending the time on it. Starting and quitting are easy – too easy.
Before you start your business make sure that you understand why businesses fail.