Business failure among small-scale entrepreneurs

[Casdinyard]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

Well, having a safety net is something that only large-scale businesses have the liberty of using. it's a basic truth in life so to speak. You'd never find small-scale businesses out there not duking it out as if it's the end of the world cause they need to make profits or else they would go bankrupt. I feel like that's also one thing that contributes to why these micro-businesses are more prone to failing. They don't have the luxury to afford contingencies and safety nets that would've prevented them from losing it all should their businesses sink under, so when they fail, they fail horribly. It's also worth noting that for most first time business owners, their first losses are the biggest and hardest to bear, with some even stepping out of entrepreneurship for good cause it's just that traumatizing to lose your money.

[romero121]

First thing with business is the identification of the need. What is in need among the people, then the location need to be identified. Now we should think of the business which will meet the needs in the best way possible. Here we should be prepared enough with alternate plans, only then it is possible to keep the business on the right track even if things didn't work according to our plans.

Business failures were part of the success, I haven't researched about those mentioned firms. For some reason I strongly believe that these business firms have established their services in a better way on some other countries. With the failure they could've understood the real need and moved somewhere else and succeeded.

[Ahli38]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

Although courage is needed to take the first step in running a business. But courage is not the only thing needed in building a business. Because in the end courage is only needed when we have sufficient capital both financially and insightfully. Then we also need careful planning and many other things that are needed. And when all the preparations have been completed only then does one need more courage in taking the first step. And this courage is also needed in making breakthroughs or renewable innovations so as not to be unable to compete with large companies that have been around longer than our business, which has just started. In essence, courage is needed to take on a challenge in business.

It's just that the real challenge will be greater when our business is already running well and then other competitors appear and that's where we have to make a better strategy in running our business so that it can survive and avoid bankruptcy. Following market trends is a good thing. But it would be better if we created a trend starting from our business. A trend emerges because someone started it. And most companies just follow trends. But the most successful are usually those who start the trend themselves. Trends can be created because of how good the innovation is and then because of how good the marketing carried out by a company is. So it attracts the interest of many people and creates a trend.

[edy_58]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

There needs to be a lot of preparation that needs to be done before we start a business because if we don't prepare well then it would be better if we didn't have to start it because if we start by just listening to the words of other people who run a business well without understanding the risks of a business well. then of course the business we run will not run well. For those who understand business well and have sufficient capital, it will certainly be easier to build a business because without these two things it will be very difficult to build a business that will develop well.

[dothebeats]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

There needs to be a lot of preparation that needs to be done before we start a business because if we don't prepare well then it would be better if we didn't have to start it because if we start by just listening to the words of other people who run a business well without understanding the risks of a business well. then of course the business we run will not run well. For those who understand business well and have sufficient capital, it will certainly be easier to build a business because without these two things it will be very difficult to build a business that will develop well.

Although it is good to listen to other people's experience to learn from their mistakes and good decisions, having a hands-on experience and knowledge is still better when you are starting a business. You have to know everything there is to learn about the business you are starting in order to have a full control of everything. Moreover, I agree, having a plan is always the best way to go on with things as it prepares you to face any challenges your business may face and with a plan backing you up you'll have a detailed idea as to what decisions to make in order for your business to succeed.

[Dunamisx]

Any business that lack proper and adequate management will suffer loss, because if there's nothing wrong with the business then the people in charge will mismanaged it and ruined it down completely, when we are starting a business enterprise, we have to engage on business plan on both short and long term running, there should also be a proper means of advertisement for the business promotion and there must also be a good background study of the business location and prospects.

[TheSpiral]

Although it is good to listen to other people's experience to learn from their mistakes and good decisions, having a hands-on experience and knowledge is still better when you are starting a business. You have to know everything there is to learn about the business you are starting in order to have a full control of everything. Moreover, I agree, having a plan is always the best way to go on with things as it prepares you to face any challenges your business may face and with a plan backing you up you'll have a detailed idea as to what decisions to make in order for your business to succeed. 

Without an experience you can led the foundation of a business but business success cannot be possible because if you have no idea that how to attract costumers, how to show your products to them and how to manage the rate with costumers then you will not get profit like other successful businessman gets.

Make discussions with those businessman who are profitable so you will be engaged with his planning and strategies which he use in his successful career and also you will have experience of working.

[poodle63]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

There needs to be a lot of preparation that needs to be done before we start a business because if we don't prepare well then it would be better if we didn't have to start it because if we start by just listening to the words of other people who run a business well without understanding the risks of a business well. then of course the business we run will not run well. For those who understand business well and have sufficient capital, it will certainly be easier to build a business because without these two things it will be very difficult to build a business that will develop well.

thats the thing business always need preparation, it also requires the businessman or someone who involved in building business to be highly realistic about the circumstance and condition of the market.
but the thing is preparation requires massive capital, in which in this case, not every business man is having, at best they'd just make some manuever and thats it, all money usually spent on the operation of the business regardless whether the business itself is already in profit, if its in state of developing which gonna burns a lot of money big fat chance, it will fail the first time it got hit by some problem.
though i'm no expert in business i think business is really complicated, no one knows the right amount of recipe in building business.

[Renampun]

...

There needs to be a lot of preparation that needs to be done before we start a business because if we don't prepare well then it would be better if we didn't have to start it because if we start by just listening to the words of other people who run a business well without understanding the risks of a business well. then of course the business we run will not run well. For those who understand business well and have sufficient capital, it will certainly be easier to build a business because without these two things it will be very difficult to build a business that will develop well.

Managerial is not an easy matter, a business that grows well and continues to develop certainly does not happen by accident. therefore, even if you have large capital, if you are not able to
- manage cash flow
- employees
- have good relations with the government,
it will be difficult to make your business live and survive. you also have to be able to follow market developments and trends, don't go against the flow, during the pandemic maybe people like to use online but now people can meet face to face, large companies such as Google, Facebook or Apple still survive today because they have perfect management and are also able to direct people.

[inthelongrun]

Any business that lack proper and adequate management will suffer loss, because if there's nothing wrong with the business then the people in charge will mismanaged it and ruined it down completely, when we are starting a business enterprise, we have to engage on business plan on both short and long term running, there should also be a proper means of advertisement for the business promotion and there must also be a good background study of the business location and prospects.

I heard and read about businesses that closed due to mismanagement. It is also quite common when the succeeding heirs fail to maintain their ancestors' management skills. Long-running businesses continue to strive because their founders sent their children to school for proper education while also teaching them hands-on.

Experience gives us the best lessons which is why many people who are new to business fail in the beginning. The most important thing is we learn from our mistakes and from other people as well. Just last week I watched the story of a successful businessman. At first, he was surprised as to why he failed to make a profit and was losing from his restaurant when in fact it was always crowded. What he learned was his failure to manage it properly starting from its supplier of raw goods and materials down to accounting for all expenses incurred which will be the basis of its products pricing.

[jeha2015]

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.

Yes, it's true, to build a small business or a large business you need to have basic knowledge about business. Building a business into a successful business that is resilient requires a big mindset, and must have a network (a network in business that is diligent). The key is in product innovation which is always being developed, such as the Nokia smartphone which is not developing, because a successful business takes a long time and of course it is a process, there is no giving up under any circumstances.

Apart from that, there are 5 other reasons why people fail in business

1. Mindset error, don't say building a small business. The truth is to build a big business.
2. Do business if you are not lazy
3. Not thinking seriously
4. Doing business is not serious
5. No reinvestment

[isaac_clarke22]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

This is a sad truth that nobody wants to admit even those successful businesses. Luck comes into factor and connections as well. Unless your product or service is hella unique that it doesn't exist yet, you would struggle getting audiences and people wanting to buy your product.

Luck would come into place like you need to find a good place to build your business. If you were born in a desert, well it might be harder for you than other small scale entreps.

[flyingcarpet]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

This is a sad truth that nobody wants to admit even those successful businesses. Luck comes into factor and connections as well. Unless your product or service is hella unique that it doesn't exist yet, you would struggle getting audiences and people wanting to buy your product.

Luck would come into place like you need to find a good place to build your business. If you were born in a desert, well it might be harder for you than other small scale entreps.

A similar situation occurred in my country. A brand launched a very good product and started selling more than others selling similar products. Seeing this situation, the other brand increased its advertising expenditures and virtually eliminated the other brand from the market. By using all its advantages such as logistics network, advertising and free products, it eliminated the product of the small-scale but successful company from the market.

In such cases, power is often money. Advantages such as advertising and logistics are all provided by having money.

[puloweh555]

Any business that lack proper and adequate management will suffer loss, because if there's nothing wrong with the business then the people in charge will mismanaged it and ruined it down completely, when we are starting a business enterprise, we have to engage on business plan on both short and long term running, there should also be a proper means of advertisement for the business promotion and there must also be a good background study of the business location and prospects.

Becoming an entrepreneur, especially one who is not a business with the privilege of parents, really needs struggle, sweat, blood and tears, so of course don't give up easily, and you really have to have a plan like you said. Luck is also a major factor in achieving success, but luck will not occur without strong effort and determination. Everyone can become a small entrepreneur but must scale up to become a big entrepreneur... the point is to start small and do it quickly.

As quickly as possible, we have to learn the skills we have, such as distribution, marketing, market share. Prepare funds, you don't need a lot, the important thing is to have a business and be ready to become an entrepreneur. It's okay for small scale entrepreneurs, the important thing is to be loyal to small and large obstacles. You have to believe in yourself because it's your own business so keep getting up. Keep learning because nowadays you can get a lot of knowledge on YouTube and the internet. Whatever business we do, we need to use our brains and sharpen them every second.

[Iroh]

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.

Every business should strive toward improving the quality of their product or/and services to suit the ever changing needs of all consumers. The lower income earners, while being restricted by the amount of money in the bank to afford top recognized brands would most definitely appreciate new innovations and better services.
Irrespective of how much is being spent, low and high income consumers have one thing in common. They’re paying customers. If a business could care less about the quality of service provided to their low income customers , they’d be surprised to learn they too have options on where to spend their money.

[khiholangkang]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

This is a sad truth that nobody wants to admit even those successful businesses. Luck comes into factor and connections as well. Unless your product or service is hella unique that it doesn't exist yet, you would struggle getting audiences and people wanting to buy your product.

Luck would come into place like you need to find a good place to build your business. If you were born in a desert, well it might be harder for you than other small scale entreps.

A similar situation occurred in my country. A brand launched a very good product and started selling more than others selling similar products. Seeing this situation, the other brand increased its advertising expenditures and virtually eliminated the other brand from the market. By using all its advantages such as logistics network, advertising and free products, it eliminated the product of the small-scale but successful company from the market.

In such cases, power is often money. Advantages such as advertising and logistics are all provided by having money.

Luck comes when we often try and get several opportunities that we can take, we have read about it from all sides and when there is a very potential opportunity, whether in advertising or whatever, we can get it easily.
Don't deny too much that luck is something that definitely exists, but it is also hidden and doesn't just come out of nowhere, of course you have to make an effort to get it.

It is true that money has an important role in producing products, but don't close your eyes too much, the amount of money doesn't matter if the product being traded is not needed by the public, it will only be temporary hype and people will lose the product you are selling.
And you need to remember that failure in small businesses is a lack of capital to back up losses, this is what makes them feel exhausted and prefer to give up.

[EarnOnVictor]

Although it is good to listen to other people's experience to learn from their mistakes and good decisions, having a hands-on experience and knowledge is still better when you are starting a business. You have to know everything there is to learn about the business you are starting in order to have a full control of everything. Moreover, I agree, having a plan is always the best way to go on with things as it prepares you to face any challenges your business may face and with a plan backing you up you'll have a detailed idea as to what decisions to make in order for your business to succeed. 

Without an experience you can led the foundation of a business but business success cannot be possible because if you have no idea that how to attract costumers, how to show your products to them and how to manage the rate with costumers then you will not get profit like other successful businessman gets.

Make discussions with those businessman who are profitable so you will be engaged with his planning and strategies which he use in his successful career and also you will have experience of working.

I've read countless guys writing similar things to yours, you are right though but business should be more strategic than the general things of experience, planning and all that which are being repeated. There are businesses that fulfil all those but still fail, that's why it's good to go deeper into this a little bit.

Personally, I believe that people should not just dabble in business but do business of their nature and capability. We shouldn't because Mr. A is successful in a business and we should do it as way, our nature and passion matter. The location, branding and marketing matter too, we should also be fully aware of the kind of people we are selling our products and services to, and how best to bring it closer to them in an unresistible manner is most important.

[bitzizzix]

when business is still small anything needs to be efficient, one mistake and business will fail thats the thing with building business from scratch from the very bottom.
its unlike what majority of people said that building business only needs courage, its not just that, luck also have big role in having big business, like if you start a business thats very niche and few years later that niche becoming a big thing then your business will definitely grow really fast.
also, when the big companies starting to get into that field, you'd also need to face them in which they have advantage of having bigger capital for better marketing and promotions. that period would also be as difficult as the other.

Although courage is needed to take the first step in running a business. But courage is not the only thing needed in building a business. Because in the end courage is only needed when we have sufficient capital both financially and insightfully. Then we also need careful planning and many other things that are needed. And when all the preparations have been completed only then does one need more courage in taking the first step. And this courage is also needed in making breakthroughs or renewable innovations so as not to be unable to compete with large companies that have been around longer than our business, which has just started. In essence, courage is needed to take on a challenge in business.

It's just that the real challenge will be greater when our business is already running well and then other competitors appear and that's where we have to make a better strategy in running our business so that it can survive and avoid bankruptcy. Following market trends is a good thing. But it would be better if we created a trend starting from our business. A trend emerges because someone started it. And most companies just follow trends. But the most successful are usually those who start the trend themselves. Trends can be created because of how good the innovation is and then because of how good the marketing carried out by a company is. So it attracts the interest of many people and creates a trend.

Of course, this courage must be supported by funds. And in general, small business owners who do not have sufficient funds to run their business will often face or experience funding problems.
So courage without sufficient funds will be meaningless and this must be the main thing to think about, because with this, when our business is advanced and needs funds we can look for or borrow it from the bank with the confidence of being able to pay.
And small businesses must also be supported by leaders who are not weak and also have expertise in the fields of business, finance and marketing. And with the addition of hard work, patience and continuing to try, I'm sure the small business you run will become big or at least run smoothly.

[barisbilgili]

Of course, this courage must be supported by funds. And in general, small business owners who do not have sufficient funds to run their business will often face or experience funding problems.
So courage without sufficient funds will be meaningless and this must be the main thing to think about, because with this, when our business is advanced and needs funds we can look for or borrow it from the bank with the confidence of being able to pay.
And small businesses must also be supported by leaders who are not weak and also have expertise in the fields of business, finance and marketing. And with the addition of hard work, patience and continuing to try, I'm sure the small business you run will become big or at least run smoothly.

Everyone has different problems in building a business, but building a business certainly requires a lot of funds so that we can make our business run and even develop well. Choosing to lend funds to the bank for business needs is indeed an easy thing to do, but we must understand well that the risk is if we are unable to pay it off if our business does not run well. In leading a business, we must have expertise in the business we lead so that we can run it well and if we encounter problems in the business we run, the leader can solve them well.

[slapper]

~snip~

Luck comes when we often try and get several opportunities that we can take, we have read about it from all sides and when there is a very potential opportunity, whether in advertising or whatever, we can get it easily.
Don't deny too much that luck is something that definitely exists, but it is also hidden and doesn't just come out of nowhere, of course you have to make an effort to get it.

It is true that money has an important role in producing products, but don't close your eyes too much, the amount of money doesn't matter if the product being traded is not needed by the public, it will only be temporary hype and people will lose the product you are selling.
And you need to remember that failure in small businesses is a lack of capital to back up losses, this is what makes them feel exhausted and prefer to give up.

So you think that luck exists and that it doesn't just happen? Friends, I have some bad news for you: hoping for "luck" is as out-of-date as dinosaurs in the world of crypto and the modern economy. But, I suppose you're right in one sense - hard work does unearth opportunities that one might mistakenly attribute to "luck"

Now, to the money. Money is merely a tool, a means to an end in and of itself. It is stupid to invest money on a project or problem without first developing a well-thought-out plan. It's a little more complicated with cryptocurrencies like Bitcoin, though. Technology, decentralization, and a change in the balance of power are more important factors than he flashiness or the amount of money invested in it. Do public interests influence its worth? Yes, exactly. Don't oversimplify it, though

And you said that items that the general public does not need are only "temporary hype"? What then would you say about limited-edition luxury goods or art that sells for millions of dollars? It is possible to create demand, my friend. What's "desired" is often more important than what's "needed" in different situations

It is a bit foolish to attribute small business failure exclusively to a lack of funding. Vision, flexibility, strategy, and yes, even timing (or dare I say "luck") can be very important.