In Bangladesh every day we are watching lot of small business are starting and lot of small business are shut downing. Small businesses are very easy to start. Maximum people do small business without any planning. That’s why we found failure rate is high in small business.
Not only Bangladesh but also all over the world maximum small business are failing. There are more than 28 million small businesses in the Unified States, as per the SBA. It's an amazing number. The pitiful the truth is that exclusive around half of them survive. What's more terrible is that lone around 33% survives 10 years or more. There are very common seven failure reasons of small business. Those are given below:
1: Not Exploring the Market
Maximum people start small business without survey of market. They are watching few people are doing well at ecommerce business so we have to do it. Before doing ecommerce business you have to search which products are most demandable in online, which customers are most traffic in online business, which courier is best for ecommerce product delivery, where is the source of product for ecommerce business etc. Without proper business survey you are blind. Maximum small businesses are failing due to the blindness of specific business survey.
2: Lack of Proper Plan
A strong and practical marketable plan is the basis of a fruitful business. Business plan should be short term as well as long term. In the arrangement, you will design practical objectives for your business, how your business can meet those objectives and possible issues and arrangements. The arrangement will make sense of if there's a requirement for the new venture through research and studies; it will make sense of the expenses and sources of info required for the organization; and it will design methodologies and courses of events that ought to be executed and met.
3: Lack of capital
On the off chance that you have begun an organization and things aren't working out – you have minimum capital and a battling business – you're truly not in an honest position to request another credit. Be reasonable toward the start, and begin with enough cash that will last you to the point where your business is up and running, and trade is really streaming out. Maximum small businesses are failing due to their shortage of fund as well as no alternative way for the source of fund to run further business expansion.
4: Poor Location:
Area, area, area is everything if your business depends on ordinary activity. Poor area is a drawback that may be excessively to survive. On the off chance that your business depends on ordinary activity, area is a key need. A poor area may make your client securing costs too high. So business should be in prime location otherwise it would be behind eyesight of potential customer.
5: Absense of Website and Social Media
Similarly as essential, be that as it may, is web area. Nowadays, your web and your online networking nearness can be similarly as vital as your organization's physical nearness. Individuals shop, scan and research online for everything nowadays. When customer searches in website for a product as well as they also searches at social media. Maximum small businesses are failing due to the absence of a business website as well as social media promotion.
6. Poor Management
Cases of poor management are a failure to run a good business – Otherwise known as absence of trust, working without standard or frameworks, poor correspondence, and absence of criticism also the major reasons for failure of small business.
7. Lack of Profit
Income isn't the same as profit. As a business person, you should keep your eyes on profit consistently. Benefit takes into account development.
As per Private Company Patterns, just 40% of independent ventures are gainful, 30% make back the initial investment, and 30% are losing cash. Maximum small businesses are failing due to the lack of profit.
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