7 Reasons Why Your Business Might Fail



Friday 21st July 2017
Amy Turk

Starting up your own business can be daunting, and it isn’t a walk in the park. 20% of small businesses fail in their first year, 50% in their fifth year and 70% after a decade of being in business. It can be utterly disheartening if your business doesn’t work out for you because ultimately, your business was your passion and dream turned into a reality, and it hasn’t worked out.

It can be even harder to comprehend why your business has failed if you just don’t understand why it’s happened. There are many reasons why your business may have failed.

1. Money Problems

According to Small Business Trends, only 40% of small businesses are profitable, 30% break even, and 30% are losing money. Ultimately, your business is there to make you money so if that isn’t happening; it is highly likely that your business will not survive.

2. You’re Not A Risk-Taker

First-time entrepreneurs’ lack confidence, which stems from a lack of experience. Taking a safe route in business can lead to success but taking risks separates you from competitors and is great for your growth.

3. You’re Too Excited

It is normal for you to be excited when starting up a new business. You are turning your passion a career, after all! But enthusiasm can often become a hindrance. Many opportunities may pop up, and you’re likely to bounce around at each one and accept them all! It’s better to focus on things that your company needs most to avoid overspending or early growth.

4. Lack Of Focus

There are so many distractions in life now whether it be catching up on your favourite television show, listening to a new album or scrolling down your social media platforms – it’s easy to get sucked in and forget about what’s important. Your business requires 100% focus and attention. Neglecting your business is a large risk and could harm you in the long run.

5. Poor Marketing

Marketing and specifically digital marketing is one of the best ways to sell your business and its product. If you have no marketing strategy, you shouldn’t be expecting sales.

6. Wrong Location

Poor location is a disadvantage that might be too much to overcome. If you’re in the wrong place for the product you’re trying to sell – your ideal customer may not be able to find you, and although this may be a problem out of your control, it can be a reason why your business may have failed.

7. Personal Use Of Business Funds

Your business bank account is not for your weekly food shop or for pampering yourself at the weekend. Your company funds are solely for your business.

If you are reading this, then it’s likely you have your own business or are imminently setting up. We have created a one-day intensive workshop that guides and supports you to gaining an understanding of the business planning process and how you can bring your business idea to life. Why not book your place today?


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