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July 19, 2018

The Commandments of Business Failure

Below are some of the factors that contribute to the unsustainability of an organisation:

 

Recruitment UAE
Cooper Fitch Dubai
Cooper Fitch Dubai
Cooper Fitch Dubai
Cooper Fitch Dubai

 

According to the statistics lately published by Small Business Association (SBA), 30 percent of business startups fail in the first year, during the first five years and 66% during the first 10 years or more. While the failure rates might be staggering to business owners and stakeholders, there are a number of reasons why businesses fail to survive. Below are some of the factors that contribute to the unsustainability of an organisation. 

Lack of strategic leadership

Every ship sails in the right direction if the captain has a compass and a map. Employees are an important part of any business but without a strategic and strong leadership team, the life expectancy of any organisation will be very short. In order to strive, business owners should put a strategic and detailed plan that allows them to understand what the playing field looks like, what is their winning move and how can they successfully contribute to the market. Having a strong leadership team also ensures that problems get solved immediately and effectively to prevent any delay or disruption in the workflow.

Insufficient capital

SBA has reported that the most common source of financing business expansions is personal and family savings. While it’s imperative to know exactly how much your business requires, many businesses fail due to their lack of finances.  Having insufficient operating funds are one of the main reasons why businesses fail. By not putting sturdy financial plans in place, you are putting your business at risk. The reasons to having insufficient capital can range from low credit score to operational tribulations. The solution to the latter is to create and implement clear and proven revenue streams.

Rapid Expansion

Growth and expansion is inevitable for any business if success is the goal, however, every step should be planned meticulously. Investing heavily in your brand can be a good decision only when you have done a strategic and careful planning for the future. With growth comes certain decision-making changes and business owners should be careful about the speed they expand at and how to smoothly integrate and implement any necessary alterations. Business owners should not confuse their success with a call for expansion. Let your organisation move at the right pace and growth will inevitably follow.

No website or social media presence

The physical location of a business is very important but what is even more crucial in the 21st century is web presence. Virtual visibility gives your business the chance to gain potential clients. Also, having a good online presence allows you to listen to your clients and understand what their needs are. Long gone are the days when one-way communication used to yield effective results. The internet now allows businesses to gain attention and get to know their clients better. People constantly search and research online and having a comprehensive website and strong social media presence will increase the chances of your business visibility which means more clients and better revenue .

Business success is controlled by the number of factors but as a business owner, you have all the keys to drive your organisation forward. In addition to patience, determination and having a positive mindset, certain strategies need to be put in place to ensure the sustainability of your establishment. You need to focus on studying the market, having a sound financial and strategic business plan that can drive your business process forward while being visible on the market radar. 

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