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

[Judith87403]

Take Kodak and Nokia for example. There are many examples in my own country as well. We had big supermarket chains in the 90's that are no longer here. There are major companies that had to close because they couldn't compete with the bigger players in their industry. In wild capitalism, the strong always swallow up the weak.

Oh you just reminded me of Nokia, how time flies. I remember those days when Nokia phones were regarded as the best and original phones in my country. Those days if your phone is not Nokia they will say you have a fake phone but today Nokia has faded away but they were the major selling market in my country those days. What you said is the real truth. A business owner should just pray that things doesn't go sour in the future because no matter how big or good a business is, one down moment can take that business to exile. One strategy that a business owner should emulate is not investing all his money in one particular business no matter how successful the business is. A business owner needs to save money in case of any unforeseen circumstances.

[Charleslie]

A strong business owner does not depend entirely on favourable economic conditions. Instead, they study the market, understand their customers, control expenses, and develop strategies that help the business remain relevant and trusted. Don't just build a business that works when everything is easy. Build one that can adapt when things become difficult.
Because in business, you cannot always control the situation of the economy, but you can prepare yourself to make better decisions within it. We should also have in mind that bad economy can challenge a good business, but good management can improve its chances of survival.

[Mate2237]

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.

Business owners can attest to the fact that there are days that their business doesn't do so well and In almost every aspect the economy has a role to play in this. From how the business moves all depends on the level of patronage that business has and if the economy isn't what it is supposed to be a lot of people won't really have the money to patronize, a lot of business owners go through this and it is a phase they feel like giving up.

[Abu-Naim]

A strong business owner does not depend entirely on favourable economic conditions. Instead, they study the market, understand their customers, control expenses, and develop strategies that help the business remain relevant and trusted. Don't just build a business that works when everything is easy. Build one that can adapt when things become difficult.
Because in business, you cannot always control the situation of the economy, but you can prepare yourself to make better decisions within it. We should also have in mind that bad economy can challenge a good business, but good management can improve its chances of survival.

The Essenes of going through series of researches before starting up a business is to be able to study the market condition and also learn how to survive in different economic situations, if any investor can be able to do that before starting up their business, they can be able to survive in any condition except the natural disaster where no business will survive, but if it is narrowed down to the economic situation, a real and solid business should survive economic situation because there should be provision for every situation.

[Crypto_Timothy]

Every successful business owner plans his business according or rather keeping in mind of the policies that exist in that environment, do if the economy of the environment is very unstable then by all means I see businesses in that environment having one or two issues.
Now having issues doesn't automatically mean the business has failed, surely every business goes through problems, that's basically how we grow by overcoming such problems but structurally if you are not organised that is when a bad economy can affect your business and even lead to you existing from the market.

[Dave1]

Every successful business owner plans his business according or rather keeping in mind of the policies that exist in that environment, do if the economy of the environment is very unstable then by all means I see businesses in that environment having one or two issues.
Now having issues doesn't automatically mean the business has failed, surely every business goes through problems, that's basically how we grow by overcoming such problems but structurally if you are not organised that is when a bad economy can affect your business and even lead to you existing from the market.

So still boils down on the leadership of that organization. If the leaders knows how to protect the business by giving the employees equal pay, then everything works as design and even in the bad economy like in the pandemic, they can still manage it. Maybe cut some budget or even personnel, but that's how business survived.

Sometimes you really have to make that kind of decisions and sacrifice so that you can moved on. And after that start all over again, have a good business plan in the next 5-10 years and for sure everything will work on your way and your business blooming again.

[henmark]

I beg to disagree. Even the good and excellent businesses still fail when there is bad economy. When their operational and financial operations break down, no business can avoid from failure.

That's right, even good existing businesses fail. And new businesses are especially prone to failing, no matter how ''good'' they are.

The chances of existing business failing are much less because that business is already established and have a fixed number of users who fuel the profits. But when it comes to new business, they often tend to fail at the very initial stage and can only survive if the owner remains consistent. I would say it might get really challenging for new businesses in bad economies so they would be the ones being dented. That's the whole reason why one should thoroughly study the economy in order to launch any new business.

Bankruptcy can save that business from debt but is bankruptcy really a good option for these businesses? As long as I understand, once bankruptcy is filed, the directors are not allowed to start a new business. At least that's the rule here in my country.

[lombok]

So still boils down on the leadership of that organization. If the leaders knows how to protect the business by giving the employees equal pay, then everything works as design and even in the bad economy like in the pandemic, they can still manage it. Maybe cut some budget or even personnel, but that's how business survived.

Sometimes you really have to make that kind of decisions and sacrifice so that you can moved on. And after that start all over again, have a good business plan in the next 5-10 years and for sure everything will work on your way and your business blooming again.

It is the firm leadership that decides fate of the enterprise in face of the devastating blows of the economic crisis. The painful choice of cutting back on labor and spending became the urgent means of salvaging the enterprise.

Creating the new base after overcoming the hardships will involve elaboration of a proper long range strategy. Planning the business strategy in the next five or ten years becomes the path to the steady revival of the enterprise, its former glory.

[Versatile_choice]

What did you mean that a good business doesn't fail no matter the economy situation?

I want to disagree with you on that, the economy situation can affect good business whereas the demand will be low. For example when you're selling clothes in areas that is not well developed, in places like this people will prioritize other things such as food and other important things over clothes. Not that cloth business is bad of course it is also one of the best business because people need clothes to look nice, but in a situation where people are not patronizing you then it becomes a big deal for you. The only business which I know that it can pass through the test of time is provision store because the main reason why we are struggling today is to provide food for our families.

[Byebyebtc]

Did you forget about the competition?
Why didn't you talk about the competition?

People open business for needs instead of wants and you realize 100 others are doing the same business, and based on factors like age, trust, reputation that others have it will be very difficult for a new business of that field to get profitable, and at the end some of them will end up changing direction to start selling things that are scarce but probably make good results depending on the wellness of the economy.

The whole business stuff is vast, and you need proper knowledge to know the type of business that will suit you and the society around you.

[Jostern]

A good business would definitely have a good strategy that would enable the business last for a very long time, and also while opening a business you have to look closely in a place where you’re selling what the people needs, so you can have customers that would patronize you. Inflation and bad economy can actually be a factor that affects business, but as a good business man or woman you have to looks closely to adapt to some uncertainties in business, this things might affect your business in a different way through your customers, you can only sell when you have customers who can patronize you for a long time. When prices goes up you have to also adjust to the market conditions, by setting a price that would be more favorable to buyers, this are things that can actually affect business, and also the competition aspect, you might not be the only one doing that particular business but when you have competition that is when the real business happens how to curb setbacks from your competitors, you also have to do better to stay in the line of business so you don’t end up missing out.

Bad economy can affect business, in the sense that the demand can reduce because of inflation, when a demand is low it becomes a problem for the business owner, inflation and bad economy can reduce demand in business.

[Localhostspeed]

Every successful business owner plans his business according or rather keeping in mind of the policies that exist in that environment, do if the economy of the environment is very unstable then by all means I see businesses in that environment having one or two issues.
Now having issues doesn't automatically mean the business has failed, surely every business goes through problems, that's basically how we grow by overcoming such problems but structurally if you are not organised that is when a bad economy can affect your business and even lead to you existing from the market.

You know it's very easy for a person that doesn't have a business always have an opinion about business. If it's that easy, people that always have opinions will be swimming money with different business but they are just noise makers. Alot of businesses have fold up because of how they never expected it, some policies changes are not expected and when they come, they are not relax or review for consequences, they implement them immediately which makes it difficult for businesses to survive.

If you are going to do a business, you have to be ready for any changes be it good or bad, you have to accept that policy changes happens everywhere. Even in countries where things are working well, they do experience these kind of challenges and what the existing business does is that they try as much as possible to adapt to what they see. However, some might be too extreme that you will have to stop your business. There are some countries that are now for killing business, when you check them it's because of irregular policies that makes business to be difficult.

[YOSHIE]

Here is why a good business doesn't break down when the economy isn't Good.

I'm not sure about your statement, what I see in the real world is very contradictory to what you said, as far as I know there is no business that is completely immune or can survive the economic crisis, risks and vulnerabilities from the impact of a bad economy remain, regardless of the type of business you develop, such as basic necessities, basic necessities, health and so on, Even though the management is good, when the economy gets worse bad things can also happen to the business.

Simple factors such as changes in economic and business flows can occur due to extreme external situations, such as government regulations, as happened in 2020, the global pandemic, natural disasters and can also affect changes in technology or markets, when businesses cannot adapt, failure will certainly occur, situations like that will certainly experience extreme economic changes.

[Makus]

1)They sell things people cannot live without.
When the economy is bad, people stop buying things that isn't necessary, like toys, fancy clothes, shoes or even bags. But they will still need to buy water, foods, medicine or soaps. I have done soap business before and it is a very profitable business to start. People don't talk much about it. The secret: A good business sells things people need every single day, no matter what.

You are right, there are certain things that people cannot do without no matter how bad the economy might be and one of necessities are food, people that sell food items will always be in business because no matter how terrible the economic condition of a country might be people need it to survive. Before starting a business it's important to consider if the particular item you are marketing would be of value in all economic conditions.

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.

Unfortunately not everyone running a good business ends up being in that position where they have enough to survive on the rainy days, having a good business isn't enough but it's also important to make sure that you apply financial management.

[Fiasem20]

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 its savings, flexible and trusted by the people.

A bad economy doesn’t stand as a threat to a well structured business because a well structured business/organization has prepared a solid foundation that can’t be easily shaken.Just as you likened a business to a weak house and a strong house,a weak house which is the business that isn’t structured or planned well it might likely collapse when a strong wind blows and the strong wind is the economic downturn while the strong house which is the well structured and planned business that doesn’t shake because they’ve laid on a solid foundation and a solid foundation doesn’t collapse easily.A structured business is the one that’s transparent,they meet up the demands of their customers,they are good at risk management,they get to a new market condition and they adapt and they dominate because of their ability to adapt.

[Unknown Op]

A good business is handled by a good businessman because it requires a lot of skill for you to navigate a poor economy and ensure that your business remain standing. You cannot call yourself a good businessman or person if you’ve not gone through an economic test that tries to crumble your business.

A good thing with this business experience is that it makes you not just a better business person, but a stronger one.

To navigate a harsh economy requires constant innovation because you need to stay creative to maintain sales and fight competition.

If you as a business owner is not that creative, employ creative business people under you.

A business can fail for multiple reasons that are beyond the control of the owner of the business. Sudden recession, rising cost of products, illnesses, supply chain disruption or maybe regulation changes. A business failure does not mean that a person lacks skills. If someone has survived downturn, it does not prove that he is a good leader, market conditions, perfect timing, access to capital and also good luck all play a very major role. It is possible to run a business in a stable economy without having any crisis, it is not necessary for the owners to survive economic crises just to have the label of good business person. It depends on how they plan, treat their employees and customers, how they manage risk and how they adapt when any sort of challenge comes in their way.

It is good to innovate but constant changes are not always a good answer. Businesses need finances, they need reliable products and they also need clear understanding of what their customers want and their values. It is very helpful to hire creative people but only having creativity is not going to fix weak cash flows or poor demand.

[Findingnemo]

Are you saying that businesses that sell survival needs like agriculture-related stuff, are too good to fail at any situation?

Then why are we saying google or SpaceX is the best compnay not someone who makes machinery for farming?

Anything can fail, that is the fact and if you are too stubborn to see that and just do whatever you are doing then you will fail too at some point, keep adapting to the demand of your customers which is what we can say as good business.

[savetheFORUM]

Not directly, but these businesses would somehow have some or the other issues due to the economy. Let's nor forget that the users or customers will be a regular person who would definitely be hit by the economy and it will hinder their spending decisions. No matter how good the business is, it can't really thrive if there are no customers. A well-planned business can still survive through these markets but the probability of making profits is much less in these times.

A bad economy will also shape the future of that business. A few of these businesses file for bankruptcy because there is no possible way they could survive the bad economic times but the ones who still survive would still be able to build a better future if they stick in these market conditions.

[JoyceBTC]

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 its savings, flexible and trusted by the people.

I somewhat agree with this statement but not fully because there are some good business a bad economy can actually affect in different kind of ways that are least expected and at the end, the business might fail. As a business owner being risk tolerance is key, it is good to prepare ahead for future challenges, ups and downs because it is expected in every business but in all what keeps you pushing is resilience. Resilience can actually keep a business strong during a bad economy to avoid giving up.

[WatChe]

Are you saying that businesses that sell survival needs like agriculture-related stuff, are too good to fail at any situation?

Then why are we saying google or SpaceX is the best compnay not someone who makes machinery for farming?

Anything can fail, that is the fact and if you are too stubborn to see that and just do whatever you are doing then you will fail too at some point, keep adapting to the demand of your customers which is what we can say as good business.

Any business whether its small or large can collapse at any time due to any reasons. For instance, Kodak was one of top company in 90s who provide services and products related to film photography. The company lost major chunk of its business due to advent of digital photography in the start of 21st century. 

A good business is build on strong foundation where all the risks and loses are managed professionally and cautiously. A well established business is run by strong management who prepares themselves for all the possible scenarios. Every business faces challenges due to a bad economy but the one who survive those downward trends are the ones who are successful ones, they are always well prepared for the bad times since they have the strategies and savings to cope up with any loss. There comes a time where every business struggles due to struggling economy so consistency and determination is most important for a strong business. Businesses who are not well prepared for risks collapses eventually.