Contribution by Jerry, Ephraim
Business
Facts
Why
business failed /best suggested solutions to limit failure in business.
When such question as above
is asked “Why business fail” many will conclude it’s due to mismanagement of
funds.
But the reasons encompassed
that, for business there human, non human, environmental etc aspects of
business. The major discussion here will centre on human being, resources and
environment.
Causes of Business Failures/Solutions
to limit failure in business: Below are confirmed facts
why business all over the world failed/Solutions to limit failure in business
1.
Doing business without having an inside into
the business: Some startup a business without knowing anything about the
business. This is not to say that you can know everything about the business
before startup no, but knowledge about each business is necessary. I am in full
support about the idea of learning a trade before startup.
2.
Separation of owner from the business:
Owners of business should separate themselves and consider that the business is
a separate entity. Decisions that will bring better result for the business
only should be taken. No withdrawal should be made from capital except to setup
other business.
3.
Lack of improper of financial information:
It becoming necessary that each business owners should have a least little
financial education. Even if the service of an Accountant or other financial
expert is employed. These will help in many ways, to understand easily what the
Accountant or other financial expert will say. It will also enable to have a
rough estimate of expected profit at certain interval expected as return on
investment. Some business owners withdraw money from their business without
taking records of how much they have used so far.
4.
Lack of proper Internal Audit Department:
This fact is more applicable to an entity that trade in Million(s) or less. It
is a well known facts .
5.
Lack of trust and confidence in the entity:
Trust and confidence is earn over time in business, so for an entity to gain
trust and confidence from customers it must keep to all agreed terms and
condition of the transactions with customers. For instance Savings clients will
lost trust and confidence in a savings banks/institutions if there is always
delay in withdrawal of their savings. This can lead to failure of any
bank/financial institution.
6.
Losing of major clients without having a
better new client can bring about total failure in business. Best option is to
get better customers daily, need for marketing strive.
7.
Use of many inexperience staffs: I am not
saying inexperience staffs should be employed but, experience is the best for
technical knowhow. Inexperience should not be assigned major/important roles
less they should be under strict supervision.
8.
Success and Failure of an entity should be
well communicated to all the staffs. This will motivate them to work hard. Hard
work should be rewarded.
