Rhea Mae A. Ilar

BUSN 120

Professor Rick Miller

14- Oct. - 2010

Why do businesses fail?

Ironically, Business Owners didn't take the time to learn why most businesses fail

before they ventured into starting a business. We have common pitfalls that leads to

business malfunction and failures. Small businesses fail at an alarming rate in the U.S. Each

Day, hundreds of small businesses close their doors because they weren't able to

effectively blend the many elements need for success.

Unfortunately, many of these could have succeeded if they had only avoided the top

six pitfalls that commonly plague struggling companies. These pitfalls included 6 pitfalls.

First is Lack of Planning, Successful small businesses don't just happen. They are result of

International well- executed business plans. Many entrepreneurs are so eager to get

started that they neglect business planning and jump in headfirst with little more than a

dream and an idea. That might cut in some arenas. Secondly, Inadequate Funding is another

common reason for small business failure is a lack of adequate funding, especially during

the critical start-up period. It severely limits your capacity and threatens your ability to

grow beyond the initial stage of life. Third is Bad Marketing, It's possible to create a

business that sells the best product at the best price and still fail because no one knows it

exists. Getting the word out of becoming the thriving venture you think it can be. Fourthly

is having Unreliable Workers, you can't sell what you don't have. Your ability to maintain

proper levels of inventory is directly proportional to the quality of your relationships with

reliable suppliers. Developing effective supply channels can take a little time, but if you

are having problems with you current suppliers don't cross fingers and hope things will

get better. Fifthly is Staffing Imbalance, Labor is the biggest...