A good business doesn't fail no matter the situation of the economy

[Churchillvv]

LASTLY: A bad economy doesn't kill a business, it just teste it, weak and unstructured business fails because they weren't prepared. A good business stays safe because it is useful, smart with it's savings, flexible and trusted by the people.

Perhaps in my opinion what you are describing is just a good business but also a good entrepreneur. Be sure to separate the business from the business person.
when you are talking about a good business you mention qualities like, the need for its customers, the value regardless of the economy, human necessities etc

When it comes to the business person (entrepreneur) then you have to look at structuring, savings, management, trust etc.

My point here is that they are two separate entities that should be discussed on its own. 

[Zlantann]

LASTLY: A bad economy doesn't kill a business, it just teste it, weak and unstructured business fails because they weren't prepared. A good business stays safe because it is useful, smart with it's savings, flexible and trusted by the people.

No business is failure-proof. Some economic problems caused by high taxes, changes in policies, wars, or natural disasters can crumble a well-structured business. Insurance might be able to cover some business risk, but this doesn't mean that some companies are infallible. Many people have closed their businesses not because they are not making profits, but because they want to save their lives due to the outbreak of wars.

I am not saying that planning and building a well-structured business is wrong; however, I still maintain that there are some conditions that will kill a well-run business. Some farmers in my area have been forced to sell off their poultry birds at a loss because of flooding.

[Maslate]

LASTLY: A bad economy doesn't kill a business, it just teste it, weak and unstructured business fails because they weren't prepared. A good business stays safe because it is useful, smart with it's savings, flexible and trusted by the people.

A bad economy does not kill a business, but if a business fail to overcome the challenges brought by a bad economy, any business will definitely collapse.

The thing is, there's no such good or bad business, everything has the same level. People will only identify that its a good business if it remained strong and standing through all its ups and downs, and people can tell that its a bad business if it fails to overcome the big challenges in the business economy.

[viljy]

The point isn’t about a well‑built business, but about demand. There will always be demand for food. And for water as well. Even if a businessman sells food from a dirty bucket during a widespread famine, people will pay him in gold jewelry. So, a good business depends only on demand, which is determined by external conditions. For example, drug trafficking is always successful, as is prostitution.

Of course, in times of economic prosperity, a savvy businessman himself creates demand among satiated consumers. Using their vanity for this purpose (by selling them premium, exclusive goods or services). But in times of decline and economic crises, only demand driven by the need to survive matters, and nothing else. Arrogance, practicality, convenience, etc., no longer play a role. Only hunger and thirst, and dependence. By the way, this is the state of the economy that the world is moving towards.

[Kelward]

I want us to think of a business like a house, and the economy like the weather.

When there is a heavy and massive rain, strong wind and cold weather,  the weak house made of only wood or cupboards collapses, but a strong house made up of bricks will stand firm.

I don't quite agree with your analogy, you're making it sound as if a business has a solid foundation that nothing can make it to crumble, remember that you can build a solid business that will withstand storms but if an earthquake happens it can swallow the whole structure of the business. It is true to a large extent that a business that is built on a solid foundation can withstand a lot of pressures but it doesn't mean that it is a guarantee that it must remain formidable in the future.

Somethings can happen in the future that can crumble a solid and we'll established business like unfavorable government policies, bankruptcy due to mismanagement or simply that a new competitor has added innovation to their product that is similar to yours. To remain relevant in business the owners must think on how to improve on their products and customer relationship yet they shouldn't be overconfident that the business will never fail in the future. They should try and guide against circumstances that can crumble their business.

[tabas]

From my own perspective, even a good business can still fail if there are sudden changes in the market, or if the business fail to execute and stay competitive with the rest of the competitors. Rather than saying that a good business isn't prone to failure, but I guess all types of business will mostly experience failure before it can be seen as a good and competitive one because it has recover from the different flaws faced in the market competition.

The same opinion as yours. I don't think that all businesses can skip failures. Each of them has challenges to face but it's about on how good the management is. We see those thriving businesses which are staying afloat due to the choice and decision of the owner. But if they give up, that's the end of it. A good business can still fail depending on factors that it can affect. A bad management or bad economy, they can be overcome but they can also be the reasons why they can fail. To be honest, it's nice to read several thoughts of everyone that all has valid thoughts whether there's good or bad economy.

[Sammye3]

2)A good business saves money for rainy days. This is taken out from your profit and you save it separately in a place where you wouldn't touch it no matter what happens. So that when times are bad you wouldn't struggle to restocked your business.

One mistake mostly small business owners do make handling every profit made as their own personal money. Call it back up funds or whatever, for a business to stand the test of the economy and the test of time, the business owner should be able to handle their business as an artificial person who needs care and attention. A like the business owner will eat, drink water, bath and so on, the business needs care and attention and making this savings is part of the care and attention.

Every business person should know to never tamper with profits if the business should grow. This is the mistake that many businessmen make, and soon enough the business goes under. Having one source of income is the cause of situations like this, because both feeding and every other expenses is focused on one business.

Successful businessmen would tell you that the beginning phase of a business is the most difficult stage especially with low capital, another option could be looking out for sponsors or selling out your business idea to potential investors too.

[Stepstowealth]

3)They know how to change quickly.
If a store sells red shoes, but suddenly people only have little money to buy socks, a bad business man will start yelling and complaining, instead of switching to the demand of the people. A good business says okay since everyone needs a socks, I will go and even get an affordable one. They adapt quickly instead of complaining or giving up.

A good business man understands how to run his business and maintain it even when the economy is bad.

For the benefit of good business people who have invested their time into trying to ensure that their businesses did not collapse in the very harsh economic system they're facing in their country I would say that some good business people try their best to ensure that their businesses did not collapse but harsh economic policies from the government sometimes intentionally crumble the business because the pressure on these business people is more than what they can handle. This does not take away the fact that these people are good business people, It just means that the economy was too difficult for them that regardless of the skill they had in navigating the business they just could not make it out. It is very difficult to grow a seed on a cemented soil so also it is difficult to run a good business in a country that has very stringent and difficult economic policies for businesses.
We have seen successful big companies leave a country because business policies became unfavorable for them, it means a countries policies can become too harsh that the best alternative becomes to relocate the business.

[Tmoonz]

I partially agree with the idea stated in the OP’s concluding sentence that a bad economy cannot kill a good business, but I’d like to add my own take: even if it can’t kill it, it can do worse than that.

In a poor economy, money doesn’t circulate in the market. In economies where money doesn’t circulate, people avoid spending on anything beyond their basic necessities. In such an environment, even if you sell the most basic food products, your sales will drop because consumers are focused on saving. I haven’t even mentioned other luxury spending habits yet.

I don’t know if things will get worse, but these are days when doing business is harder than ever.

What you said still suggest that no business is immune to failing, now we shouldn't even talk about a good business without a good business person running the business, business can be a good one but when handled or managed poorly it will fail even when the economy is good, if a business doesn't fail no matter the situation of the economy then it is as a result how good the brain behind the business is and not just how good the business is because that same business can as well failed in the hand of another person in the same economy.

[Cheema02]

A good business that stands the test of time and summount hurdles both from regulators and the consumers must thrive on quality resilience.  Such a business must have a core strategy that makes it flexible and adept to innovate in times when things are difficult and when there's competition in the market.

So while I can boldly tell you that the economy at any time will expose flaws in a business strategy, it is also in these economic situation that we know how good the business is because while some may dive into using substandard materials and cut corners just to make ends meet, others might incur the cost, remain patient with their customers, never reduce quality and never increase cost but maintain a flexibility that makes changes almost unnoticeable and uncompromised.

For long-term success and growth in business, individuals may use different indicators and harsh economic situations are the best indicators. Which one remains with a company or business in difficult times, like customers, workers, or investors? In the future, companies will have more trust in them than others. And due to this, trust gives a good comeback in the form of rewards.

Can a company gain the loyalty of customers by giving lower quality products at higher prices? Obviously, it's impossible, so if a company gives a quality product with a small margin, then, in any difficult time, customers always stand with the company and prefer it. I think for success in business, we need to have an active mindset and always remain ready to make changes in the structure and management of the company if needed. So, in difficult times, we identify our mistakes and after working on them, we observe a huge difference in our business.

[Zaka1221]

There is always a limit on how much preparation and adaptability are required to protect a business from any sort of economic crisis. It is possible that a business can still fail even though it is well managed and has a good amount of products and maintains good customer trust.

For example, if there is any sort of inflation, customer still need essential needs to buy but they do not have money to spend on them. At the same time, the owners of the businesses have to face high rent they have to pay for transportation, electricity and raw materials. Having savings as an energy reserve is good but not for small businesses they do not even have profit to build a large amount of reserves when the economy is already struggling. Having a good business does not guarantee survival in any sort of economic condition. Yes, if management is good, it can help and improve chances of survival but outer economic conditions still overwhelm.

[Cookdata]

From my own perspective, even a good business can still fail if there are sudden changes in the market, or if the business fail to execute and stay competitive with the rest of the competitors. Rather than saying that a good business isn't prone to failure, but I guess all types of business will mostly experience failure before it can be seen as a good and competitive one because it has recover from the different flaws faced in the market competition.

All the lists he wrotes are theoretically basic, none of it define the standard of a a business and how economy operates. I used to watch a certain products in the early 2000s when life was without phones, they made sales, all OP posted was never their problem, they paid staffs well, the income and taxes were fully paid but they fold up in some states and gradually decline because of governments policies that can't habitate business. You increase price people stop buying and you are good as dead.

If you see a business striving well in a bad economy, that business has compromised one thing or the other to fit into the business and trust me, it's not always in legal way. Some companies and business here produced substandard goods that doesn't meet standard and consumer protections don't do anything about it. They produced inferior products they can't export to other places, that's how many of them survived. You can't call that business, that's a crime disguised for profits making.

[Compromise me]

From my own perspective, even a good business can still fail if there are sudden changes in the market, or if the business fail to execute and stay competitive with the rest of the competitors. Rather than saying that a good business isn't prone to failure, but I guess all types of business will mostly experience failure before it can be seen as a good and competitive one because it has recover from the different flaws faced in the market competition.

The same opinion as yours. I don't think that all businesses can skip failures. Each of them has challenges to face but it's about on how good the management is. We see those thriving businesses which are staying afloat due to the choice and decision of the owner. But if they give up, that's the end of it. A good business can still fail depending on factors that it can affect. A bad management or bad economy, they can be overcome but they can also be the reasons why they can fail. To be honest, it's nice to read several thoughts of everyone that all has valid thoughts whether there's good or bad economy.

A good business means the business that have the ability to face the challenges or bear the losses during difficult bad situations or bad economy, but without reaching its the point of closing. It doesn't mean that no body or not the external factor affect its. But if it would keep itself stable in any circumstances that's mean it is a business whose foundation are strong. When you are functioning well your company keeping in mind all these factors then handling the business is not difficult.If we look around us e can see that many brands are standing strongly, do you think have they never experienced such situations. But they fought with the situations but one thing that helped them in build their name is their courage or patience or good management.

[Captain Corporate]

I partially agree with the idea stated in the OP’s concluding sentence that a bad economy cannot kill a good business, but I’d like to add my own take: even if it can’t kill it, it can do worse than that.

In a poor economy, money doesn’t circulate in the market. In economies where money doesn’t circulate, people avoid spending on anything beyond their basic necessities. In such an environment, even if you sell the most basic food products, your sales will drop because consumers are focused on saving. I haven’t even mentioned other luxury spending habits yet.

I don’t know if things will get worse, but these are days when doing business is harder than ever.

What you said still suggest that no business is immune to failing, now we shouldn't even talk about a good business without a good business person running the business, business can be a good one but when handled or managed poorly it will fail even when the economy is good, if a business doesn't fail no matter the situation of the economy then it is as a result how good the brain behind the business is and not just how good the business is because that same business can as well failed in the hand of another person in the same economy.

Usually, when a good business stands even after bad periods, that is mainly not just because it has a great brain behind it, but also because it is not getting impacted by whatever that bad thing is too much. Depends on the business and the bad day; we are talking about a situation where we could have something very good or very bad, and we have no idea what that would be. Imagine this: let's say you are a bakery owner, right, simple enough, but then all of the flour and grains are gone in your country; no idea what may cause that in real life, but just imagine it.

Now a brick maker will not be impacted, but you would be. So in this case, if you have a good business and whatever happens in your country impacts you, then no matter how big of a brain you have, you may still fail, but if it is something that doesn't impact your business, then you will survive. "Economy is bad" is not a good enough reason to fail, that is too broad, and to be fair, the economy is almost always bad.

[HyperCodexV]

LASTLY: A bad economy doesn't kill a business, it just teste it, weak and unstructured business fails because they weren't prepared. A good business stays safe because it is useful, smart with it's savings, flexible and trusted by the people.

Perhaps in my opinion what you are describing is just a good business but also a good entrepreneur. Be sure to separate the business from the business person.
when you are talking about a good business you mention qualities like, the need for its customers, the value regardless of the economy, human necessities etc

When it comes to the business person (entrepreneur) then you have to look at structuring, savings, management, trust etc.

My point here is that they are two separate entities that should be discussed on its own. 

A business and the entrepreneur are one single entity, especially when it comes down to a small local business. If you look around on the street, you will realize that the entrepreneur is actually the business and if an owner makes a costly management mistake, then it affects the entire structure. Like a shop cannot in any way adjust its own prices of goods or save capital or talk to customers in a meaningful way, that can only be done by the business person and in a case of a harsh economic storm, if the business survives, then it is definitely due to the street smartness of the boss and his flexibility to adapt to the pressure.

[CryptopreneurBrainboss]

LASTLY: A bad economy doesn't kill a business, it just teste it, weak and unstructured business fails because they weren't prepared. A good business stays safe because it is useful, smart with it's savings, flexible and trusted by the people.

In which world please? The only good thing about a bad economy is that it gives rise to other types of business that won't have come out in a good economy but that doesn't mean bad economy favours business, good economy conditions does that because bad economy will kill already existing business.

Money needs to flow for business to survive and when there isn't money coming in from the citizens of a country then business begins to fail. When workers are paid well then they can have extra money to order rides like Uber and the rest but when the economy is bad then they take the bus and that's just one example.

Many other examples can be given but all ends in letting you know that bad economy aren't the best for business and it does affect business more than anything elses. The money is always less in bad economy for all businesses and only a selected few makes it in bad economy but that doesn't make them better business as you're describing that doesn't fail.

[Donk1]

​Well you are right but still that doesn't change the fact that demand often reduces when the economy faces inflation / devaluation of the currency, and other stuff. Basically any goods that have an expiration date are often risky to purchase, so perhaps a businessman or woman should focus more on what would not expire no matter what.​That said apart from economy issues, businesses face a lot of stuff like competition, low sales during certain periods especially rainy days, and many more. So perhaps what I am trying to say is that a businessman that is serious with his or her business must first understand the consumer by having the products that have high demand. They must understand seasonal management of demand ,They have to be prepared for anything because, economy or not if a business isn't prepared or let me say, doesn't have a backup plan then when they are under financial crisis, they often lose their liquidity and purchasing power.​So considering all this, it's easy to say a good business goes way beyond normal understanding, because everyone has their strategies. That's all.....

[tabas]

The same opinion as yours. I don't think that all businesses can skip failures. Each of them has challenges to face but it's about on how good the management is. We see those thriving businesses which are staying afloat due to the choice and decision of the owner. But if they give up, that's the end of it. A good business can still fail depending on factors that it can affect. A bad management or bad economy, they can be overcome but they can also be the reasons why they can fail. To be honest, it's nice to read several thoughts of everyone that all has valid thoughts whether there's good or bad economy.

A good business means the business that have the ability to face the challenges or bear the losses during difficult bad situations or bad economy, but without reaching its the point of closing. It doesn't mean that no body or not the external factor affect its. But if it would keep itself stable in any circumstances that's mean it is a business whose foundation are strong. When you are functioning well your company keeping in mind all these factors then handling the business is not difficult.If we look around us e can see that many brands are standing strongly, do you think have they never experienced such situations. But they fought with the situations but one thing that helped them in build their name is their courage or patience or good management.

That's the point there of what you've said that I verily agree, it's about the foundation which should be strong. Most of these good businesses might not anticipate that a bad economy can make their business close if it's profiting. But with little factors that can affect them, it can become bigger in the long run. Yet, if they have a strong foundation and I think also with faith, these business owners can stand in the test of time. We've seen it from pandemic, and right now there's a rumor again about that pneumonic plague virus in Siberia. Businesses should prepare for the worse which is yet to come if they're able to survive in the past.

[DYOR+BTC]

​Well you are right but still that doesn't change the fact that demand often reduces when the economy faces inflation / devaluation of the currency, and other stuff. Basically any goods that have an expiration date are often risky to purchase, so perhaps a businessman or woman should focus more on what would not expire no matter what.​That said apart from economy issues, businesses face a lot of stuff like competition, low sales during certain periods especially rainy days, and many more. So perhaps what I am trying to say is that a businessman that is serious with his or her business must first understand the consumer by having the products that have high demand. They must understand seasonal management of demand ,They have to be prepared for anything because, economy or not if a business isn't prepared or let me say, doesn't have a backup plan then when they are under financial crisis, they often lose their liquidity and purchasing power.​So considering all this, it's easy to say a good business goes way beyond normal understanding, because everyone has their strategies. That's all.....

Be it with or without the existence of expiry date so far it falls among the demands of final consumers it will be easy to deal with, although inflation and devaluation of commodities stands as a challenging factor in business but this brings in the reason why it will be nice engaging on business based on the requirements of consumers and not the choices of the entrepreneur investing in that specific business in question.
Demand of commodities is one reason proper research that must be made on the environment before setting up a business, environment is the deciding factor that must be considered before starting a business because without this idea investments maybe made on business with low demand.

[snowpega]

First of all, OP, I have one little question for you, which is, what if you are running a physical business? How will you keep changing the price of a specific product compared to your competitors? Obviously, you will have to manage an average selling price to boost your product sales, right? Or will you only readjust your product price if your customer tells you he saw the same product at some other shop at a lower price? Obviously yes.  

But if you are running an online business, then everything is transparent, and you can easily compete with all other sellers selling the same product to increase your sales. And when it comes to trending, you can also find many trending products to sell using different tools. This is why, in my point of view, if you really want the best ROI, then I personally believe that online business models are very strong in the current time in which we are living in. DYOR!