Why Some Business Crash Down

Source

In my community, I have witnessed a lot of businesses that came out with a big bang and suddenly in less than four months they crash down so badly, and when these people are asked what happened to their business their response is the same "sales have been poor", which is the wrong answer.

They should be asking themselves what they are doing wrong but instead they preferred to get big loans from banks and invest twice the amount they used in starting up the business hoping to make five times more profit for themself and later on squander the profit and capital and this creates high debts and at that moment the business crash to the grow.

    Reasons Why Business Crash Down 

Greed

Owners of businesses sometimes let only making money cloud their minds and may overlook the flaws in their employees so far they are bringing in the big bags and this is the beginning of destruction in some businesses. The owner being less concerned could put the business in danger, the employees might be doing something dirty to get those profits in and when the whistle blows the owner would be the prime suspect and might get into serious trouble which at the end of the day destroys the business.

Inconsistency

Some business owners lack inconsistency and this has proven to be the downfall of many businesses. For example, if a new shop sales orange juice and customers keep coming for that particular orange juice and all of sudden the owner can't keep up the supply of the product and eventually stop selling it, once the customers come four to five times and still see that orange juice is out of stock they will take their money elsewhere and find where they can get the orange juice and before you know it the owner starts losing customers and his business begins to crumble.

Lack Of Capital Management

This is an important factor in business and also the main reason businesses crumble. If an owner of a business takes out of its capital that business is destined to crumble and many don't pay attention to it, instead they tend to borrow money(there is nothing bad about borrowing money, but will it be used properly to bust the business and return make a profit) and squander the money and this leads to the unending borrowing to pay back money borrowed.

Lack Of Insurance

In Nigeria most businesses run without insurance and this makes this business lose their assets, because when they acquired loss they are bound to sort it out themselves and this has climbed small businesses. But with insurance, the burden of those losses will be eased by the insurance company and this will help the business grow in the long run. Patronizing insurance should be the first step for every business owner in setting up their businesses.

Conclusion

To be a better business person one needs to be disciplined and cautious in ruining the business, most businesses started small but today because of their consistency, hard work, and diligence they are not where they started, and remember a successful business begins with the owner.