Topic: Business failure among small-scale entrepreneurs - page 7. (Read 3156 times)

Yes, that's right, they came as people who didn't know anything about what they had to do and what they had to prepare for. That's right, in business planning it is very important because that is the only framework for us to run it, as you said a businessman must know his vision and mission, conduct market research and what opportunities will be taken under certain conditions, and of course they must also know the needs of the local community. Today's business competition is very tight, many other competitors have created many advantages in their products, they are doing very well because they have clear goals. So that's right, how to be successful in this field if you run it without any preparation or knowledge, at least you have to know some basic things in the business that you are going to run.

You see, many of them fail and stop halfway, because they only do it by relying on courage without any knowledge, it's very reckless and in vain, just a waste of money and time. So in essence, if you want to build a business, the first step you have to do is do market research, adapt to the environment, find out what society really needs and you can fill that void with the products you have, try to make it useful for society so that your business can last a long time. And besides that, I also emphasize that you must also have a warrior mentality, never give up because business competition is very tight.

That is an unfair generalization for all newcomers. And simply not true. At least 10 to 15% are prepared and ḱnow what they are doing.
Some have elders look over them. Do you really believe that Bill Gates had no help?

New entrepreneurs have very little knowledge about business and lack of a proper business plan is one of the reasons why small businesses fail. If you don't know who or who will be the customers of your business whether the location of the business is right how the competitors are doing business etc you have to face losses. Also an entrepreneur cannot succeed without a specific goal objective or direction. An entrepreneur must have a strategic vision there are many strategies to consider in business. He has to move forward with his specific goals by understanding the surrounding business environment. A businessman can be successful in life if he proceeds with the right experience.

Business owe it to their customers to give them the best products because if they don't, they'll go and find it in another place. The business world is very competitive therefore our product should always be at its best all the time. When we don't take our customers feedback serious we lose interest from not just the customers but also others that they are going to tell and others those individuals they told are going to tell too, customers feedback should always be treated with all seriousness.

Poor customer management is also a reason why small scale business fail, the product might be good, price also fair but when a business has poor customer management, they'll keep losing customers until they have nobody left to buy their products and they'll have to quit.

Another issue or thing that impacts the reason why improving quality is vital is competition. Reality is there will always be another new or existing business that will compete for the target clients and customers. If a business is not doing anything to improve the quality of their products and/or services and customers see that the competitor is offering better quality, it is possible to lose customers, even loyal ones.

As pricing goes, there is also competition. Hence, between the two I think it is best to have the better price with better quality to have the best of both factors that will drive more customers/clients your way. See, if we don't improve and adjust, competitors will eat us alive in this industry.

That’s why there are surveys to a business.
It’s a vital yet neglected side of most businesses. Some of the reasons being that, people don’t see the need to look into just how the product is appreciated and why. Rather, they depend on advertisements to do all the job for them but, it’s not overly that.
Running surveys once in a while gives you an idea into the customer’s perspective of what they want, why they want it and what’s the line of preference between close competitors. To get these data sets, you need to go out there into the field or have customers come to you in a promotion but watch out, promotions could offer some bias as, most of those that would come by will be hoping on some price and as such, be biased in there qualifying of the product.

Quality is very important as much as quantity. Apparently, customers can’t always have them both but then, it’s better to deliver quality and have your customers dilute them into quantity if they do wish and be good.

On the time that your business had become so big then it would really be just that understandable that you shouldn't really be stopping there. Why? Competition and changes is really that inevitable on which if you do
make yourself stayed up on the ways or methods that you have used to make yourself that successful or able to make you big then it shouldnt really be stopping on that point but rather come to think with other
things which would really make yourself to be continue improving and could really go against or compete with newer competition which do comes up with something new idea or kind of approach.
You would be needing on continous improvement because on the time that people around would really be seeing  that you are already becoming that outdated then they would really be just simply flock away
and would find for another place for them to hang on and involved with and this is a normal approach and the normal thing where competition is really a tough one which it would really be applied
in most industries where it do really exist. Make yourself that confident then it would really be putting up on your demise. Continue on improving and dont make yourself that confident
and do all sorts of things on which it would be intacting your customers needs and interest.

Of course, if we can't maintain the product quality or the quality of our service, the customers may feel disappointed. The customers always want to get the best quality, they will always compare our quality with others. When they think others have better quality, they will never come back again and totally move to another one. That's why maintaining the quality has a big role to keep the trust among the customers.

Some customers even expect for an improve of our quality. They may feel bored if there is no improvement at all, they may judge we have no innovation. But this type of customers mostly come from the upper-middle class people. But if the most customers come from the low class people, they only focus on price. As long as it is cheap enough, they will never complain.

Nowadays, very tight competition means that all companies are required to continue to innovate to satisfy customers. And if a company cannot compete in making the latest innovations, this will make its customers switch to other companies. Another thing that makes it easier for companies to fail is when they cannot know what makes customers comfortable. Sometimes convenience is the most important thing to keep every customer from leaving. So that is where it is important to review every complaint or criticism and suggestions from customers. Customer satisfaction is the main thing. There are many out there companies that like to do promotions and marketing very well. But the services and platforms they have are not very comfortable to use. So they just waste money on promotions. Even though the priority should be comfort for customer satisfaction. after that then introduce to more customers. Promoting a product that still has many shortcomings will only make the company's reputation worse. So product improvements must be made from the start.

Well exactly, you said some common facts that cause most of the business people to fail in running it. Honestly, before we run a business in any field, we should first see what is really needed by the community, and if we already know about the market situation then we can proceed to the planning stage. In terms of capital, in my opinion, it is not too much of a problem because you can borrow it at the bank, but if you don't want to deal with banks regarding some of the interest that is there then saving from now on to build a business in the future is much better.

And in my opinion besides that, it is also important for a business person to prepare several other things, and I say mental readiness is also very necessary there, we can see not infrequently some of those who have capital and a pretty good plan but they are not mentally prepared, and after that fail with a record of stopping halfway. To be honest in business competition is very important and when other competitors make updates then inevitably we also have to think of something in order to compete with them. Excellence in business is always needed, and they will always look for ways to be superior to other competitors. But if they can overcome those challenges I'm sure they'll be successful, and for the rest I agree with you.

Most new businesses fail within the first 5 years. One common factor is a lack of proper planning & market research which leads to a failure to identify a target audience or understand competitive landscapes. Insufficient funding, poor financial management & an inability to adapt to changing market trends are also common challenges. Ineffective marketing strategies, inadequate customer engagement& a lack of innovation can contribute to business failures. Obviously it's important to remember that failure is often a valuable learning experience & can maybe pave the way for your future success.

Well that's right, and of course the purpose of the promotion they do is none other than to increase the number of customers or their customers. As you said above, we can also imagine when we, for example, become customers, we will also choose a promotion that is good, attractive and of course we can trust. In a business, I also understand that the competition there is very tight, there are always advantages from other competitors like they are more able to provide great benefits to customers, so there we also have to be able to find solutions so that we can still compete with them in various ways. in that condition they will usually rely on price slam promos or lower prices to be able to attract customers again. Marketing and promotion are interrelated and cannot be separated, a small example is like someone who acts as a marketer will bring something to be promoted.


Well sure, but maybe it also won't always be good or last because they also have to adjust it to the needs of the community according to existing conditions. so still they should be able to make various updates to their products, it will be useful to balance with the needs of the community. Oh yes, I also often see now a lot of promotions that don't make sense, I mean like for example they sell goods at very cheap prices for example, in my opinion it is done maybe because they have run out of ways to compete with products from other competitors.

Well this is why every big company they never stop making promotions in their business. Because they know that promotions can also bring in more new customers by taking advantage of old customers. Well, just as we, who are old customers, find good promotional information, we will also start talking to those closest to us and bring them along whether they will be interested in the existing promotions. And about Marketing then this is actually far more important than promotion. Because marketing that is created with good planning will make the product more widely known to the public and attract a wider range of new customers. And marketing and promotion are two things that must always go hand in hand in carrying it out.

Businesses that have good marketing and promotion usually last longer and can grow bigger quickly.

It is indeed very important to ensure that a good promotion or marketing is at work for a business to maintain good status. Having a good marketing plan welcomes various benefits for businessmen, whether they are new or are already well-known in the industry. In fact, according to Bradley (2019) in his article entitled The Importance of Promotional & Marketing Strategies posted in Chron, there are three significant benefits that a good promotional and marketing strategy brings. First, promotional and marketing strategies allow businesses to understand and have a better connection with their clients and customers as by having the right marketing plan can lead your business to the right demographic to have better access to your target clients and customers. Second, promotional and marketing strategies also lead businesses to have better development of financial goals as financial goals are correlated to sales targets. Lastly, promotional and marketing strategies assist in strategic planning.

To have a better understanding of these points here is the article: https://smallbusiness.chron.com/importance-promotional-marketing-strategies-57205.html

As much as possible then it would really be that entirely be recommended or suggested on building or making a business which isn't a loan or simply came from your own savings or funds which are intended for business or investment. Although not all would really be having that kind of allocation then this is why they would really be considering on taking up some loan in banks. Yes, it isnt bad but the risks of possible or potential problems is there since not all the time we would really be succeeding. This is why in taking up some loan then be sure that you would really be able to repay if ever the business would failed out or simply having those back up plans because if not then you would really be finding yourself on great trouble.

If we do speak on taking up a loan for some business expansion then it wont really be a bad idea. In overall it would really be just depending on a certain individual since not all
would really be that successful but there are ones who are risks takers on which they wont really be able to know if they would succeed unless they would try and this is why they do come up
with this kind of option.

In today's era, promotion or marketing is the thing that must be prioritized to attract more customers. And yes, at this step, more capital is needed to fund the promotion and marketing. And those who lose in promotion and marketing are the ones who will slowly experience defeat. So it is not surprising that many companies are starting to go bankrupt. But in the end, the quality and comfort provided by a company to customers must also be prioritized. Because of course consumers will stay and become regular customers if they feel comfortable. Currently in my country the online shopping platform companies that are most widely used because of their convenience are Shopee and Lazada. They make customers satisfied with their services. And the promotions they do never stop. They realize that promotion is important in the digital era.

We don't know what small business that is talking about, because every person's view of a small scale business has a different interpretation from their respective perspectives, my views of street vendors can also be said as small businessmen or common Also entrepreneurs, and they do not need large funds in starting their business, as long as they have the ability to form products or provide services, of course they can easily start when they fail in one field.

But the most important thing in this case is, no matter how much or small the business is run, financial arrangements or financial management must be there, and the mentality should be formed in financial governance must be really considered, because it is the most important capital in business. With that note if you still do not have a family or do not have the burden of the lives of others that you are responsible, except those who have dependents of family life, of course, preparation must be mature and have a reserve fund and others, because failure is a disaster if the situation is like that.

Every business has financial management to anticipate losses unless business people do not organize financial management so that they have to go out of business if they do not keep reserve funds to maintain their business. But for lower level businesses it will be easy for them to build another business because they don't need high funds to start a business from scratch, but for high level businesses it will be difficult to start a business from scratch if they don't save reserve funds, it is impossible to apply for large loans for their business .

An important factor is that they must have financial management and a solid team to run the business, they also need to prioritize financial advisor positions so that the company's finances are managed properly for business growth.

That's actually a good point, if you attend some seminars on how to start in business I think they also include in the plan the backup capital in case there's a need in the business such as materials, wages for the staffs and rent. That's why it's important to invest with knowledge first before starting even a small business, you could do online webinars or seminars and there's already a lot of videos online that could help you to start a business. So once they've gain losses they will be having a hard time to recover due to they don't have a back up money.

And also the thing even the fact you have the capital, but if you don't know how to handle it like just impulsively by materials to overpriced stores for sure that would be a big waste if your business did not gain attention to customer. Remember you could do your own trademark like some DIY things for your business because people loves to try new things. For sure once you've succeed there will be other people will copy your trademark and competition is on which can make your business boom!

Apart from that, capital is one of the obstacles where they are difficult to compete, when experiencing losses small entrepreneurs will find it difficult to rebuild because of the limited capital they have, it can also actually happen to large companies, but the difference is that they have enough capital to back up the losses they have and it affects the company in the future.
If we pay attention, many small business people have to go out of business because they cannot bear all the losses. I believe that something that is built must also have preparations such as backup capital or something else, and what happens to small entrepreneurs is that they build a business without preparing it, or even they build a business with a lack of capital.