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Why does so many businesses fail? Is it because of faulty product/ service or entrepreneur?

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Some will say, "Lack of Funding". Others will say "Lack of Customers" Still more will maintain the lack of a niche or product is the major reason. All of these rather simple statements are symptoms of deeper issues.

In the last 10 years here on MicroMentor I have found the following issues at the top of my list for failing small enterprises:

  1. Promising what they cannot deliver

  2. Overextending resources and getting a reputation for poor performance.

  3. Telling the customer what he or she wants to hear instead of what they need to know.

  4. Not knowing the value of networking constantly on professional sites and accumulating an "Expert" rating from peers

  5. Not understanding the value of blogging. A blog is quite different than a web site. Provide good, solid information free of charge and use blog searches for synergistic businesses to team with. Teaming is an absolute necessity these days.

  6. Lack of preparation to provide information, samples and valuable service gratis as a marketing tool; introducing oneself and then immediately engaging the client with presentation tools available to bring expertise to whatever topic they are interested in.

  7. Quoting and billing what the client cannot afford and not growing with him (in content and resources).

  8. No dedication to working oneself out of a job with a specific customer and having the client take over by training him, thereby having him remember you and recommend you to 10 others.

  9. Not remembering that growth is a function of persistence and foresight. Know where your market is headed and get their first - then write and speak about your success indirectly by helping others. Demonstrate humility and a satisfaction in helping others succeed. They will find ways to give you credit. There are ways of tooting your horn without making peoples' lights go out.

  10. Not keeping in mind that word of mouth advertising from pleased clients is a sure ticket to success.

Report Kenneth's answer

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Indeed. As there isn’t one ingredient for success, there isn’t a single one for failure.

Report Priti's answer

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For a good business one must be perfect with the idea, and this idea should be answering the market gap, because it is easy to work on existing demands than created demands

Report Daniel's answer

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Business fail mostly because there is no demand,now the fault of the entrepreneur is failing to know how to create the demand

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Customer is Business. No customer or low number of paying customer leads to asphyxia of the business...Customer is the blood line of business There are many reasons for an enterprise to experience a dearth of customer ranging from poor products, poor management, poor delivery , poor culture et al..All of these affect acquisitions of customers and their retention. Everything starts and end with customers. Lately, a new factor has emerged , employees. Their fluidity and flexible work structure is making them very relevant in the value chain of rewarding customers as well..

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Focusing on cash, reputations, social status, living/showing luxury , etc..., based on their hangouts

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