Business failure among small-scale entrepreneurs

[BRINIRHA]

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.

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

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.

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[1714468635]

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[Jody.Drummer]

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.

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.

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

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.

[DeathAngel]

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.

[Dickiy]

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 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.

[Jatiluhung]

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.

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.

[nurilham]

Inability to maintain quality can also be a reason for a business to fail, Customer's always want the best, the moment their is lack of value it can change the mind of Customer's to go after something else and may not come back. Business can also fail when you don't know what your customer want.

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.

[Fatunad]

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.

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

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.

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.

[Smartvirus]

Inability to maintain quality can also be a reason for a business to fail, Customer's always want the best, the moment their is lack of value it can change the mind of Customer's to go after something else and may not come back. Business can also fail when you don't know what your customer want.

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.

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.

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.

[dothebeats]

Inability to maintain quality can also be a reason for a business to fail, Customer's always want the best, the moment their is lack of value it can change the mind of Customer's to go after something else and may not come back. Business can also fail when you don't know what your customer want.

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.

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.

[irhact]

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.

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.

[Negotiation]

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.

[WillyAp]

New entrepreneurs have very little knowledge about business and lack of a proper business plan is one of the reasons why small businesses fail.

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?

[Dickiy]

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, 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.

[Lorence.xD]

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.

Well to be fair, there's still a lot of people who have planned a lot of things even the back up capital things, location and target audience things still they haven't managed to success. Point is not all things are going according to the plan so it's either you have plan A and plan B, if its still doesn't work for sure it's either not in demand business where customer doesn't buy it. As you said businessman can be successful if he proceeds with the right experience, so those failures can be either work as a lesson or just experience for your business journey. If you take those failures as a lesson to growth for your business for sure you would point out the things that hinder your success. And I agree that if a businessman doesn't even have a goal and have a just go with the flow mindset will be having a hard time to succeed as they don't look at the brighter side and the potential of their business.

[Aanuoluwatofunmi]

Business fails and not only with small scale enterprises, other big businesses failed as well and cease from operations, there are many reasons that could have led to having a business failure in what we do sometimes because we are not careful enough or not being vigilant to have sensed it coming, most of these occasions of business failure would have been giving signals to serve as indicators but when we don't make plans then having failure becomes an inevitable consequence.

[panganib999]

Business fails and not only with small scale enterprises, other big businesses failed as well and cease from operations, there are many reasons that could have led to having a business failure in what we do sometimes because we are not careful enough or not being vigilant to have sensed it coming, most of these occasions of business failure would have been giving signals to serve as indicators but when we don't make plans then having failure becomes an inevitable consequence.

You're right about that. But more often than not these large scale companies have safety features and contingencies that would keep them from drowning especially during precarious situations. Plus small companies are more prone to committing rookie mistakes in the business world so this post goes out to everyone who's trying to become an entrepreneur thinking it would all be rainbows and sunshines when the fact couldn't be any more different.

Small or Large business risks and problems come, but large companies has their safety nets to support them when shit hits the fan and they lose their footing. To small scale businesses these kinds of mistakes are something they just can't afford to commit, which makes this all the more important to them.

[hafiztalha]

Yes, you are right. I see many people making a portfolio, your mentor plays a vital role in your success. One work without mentor is difficult but when he explains all the facts and figures to us, our chances of success increases. There are big businessman that start from small business, now they are enjoying a successful life. When your father supports to stand a business, it gives happiness to person because in way he engaged his father very closely. More the strong relationship, more will be your success. If a person has a skills, he can work at any place of the world and can earn money. Business failure chances occur, this risk can be minimize. The people who take calculated risks in their life, they will be successful at the end.

[salad daging]

Business fails and not only with small scale enterprises, other big businesses failed as well and cease from operations, there are many reasons that could have led to having a business failure in what we do sometimes because we are not careful enough or not being vigilant to have sensed it coming, most of these occasions of business failure would have been giving signals to serve as indicators but when we don't make plans then having failure becomes an inevitable consequence.

When starting a business it must have double capital when the first fails we can certainly still overcome it with double capital that we can start again with operations as usual of course with a higher level of vigilance in the sense that we must fully understand the business sector that is being undertaken because in my opinion for the first and second will definitely experience failure.

Having experienced this difficult time when the business was just starting, of course we have to be more skillful with what is offered in the product, including in marketing with a more continuous reach, especially what is more important is that the financial management sector must be healthy.

[BRINIRHA]

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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.

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.

And when a company achieves higher success, the company must also start to be wary of competitors from other companies who will always pay attention to companies that have achieved higher success. Because there is a saying which says that the higher a tree grows, the stronger the wind blows. This means that if a company gets bigger, the company must also strengthen the fundamentals of the company itself. Just like a tree must strengthen its roots, if the tree doesn't want it to be toppled by the wind.

Because the higher the achievement obtained, the less easy it will be for the exams that a company will face. Because out there, even companies and other companies can bring each other down in ways that we don't imagine. Promotion and innovation must not be stopped. And it must continue to be improved. Because this is one way to keep every customer from leaving.

Apart from marketing, promotion and innovation. Another important thing is to maintain quality and never reduce quality when the company's name has grown. Because just one mistake will make the reputation of even a large company collapse quickly. So being more careful and never showing gaps to competitors is an obligation in any business world.

[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.