Reasons New Businesses Get Defeated Easily

Did you know that 25% of new businesses fail 15 years after their journeys!

They can fail even after 15 years. 

All right! Read more.

By 10 years, 60% of the new businesses stop working. 

Let’s reduce the number of years (which doesn’t sound good)

By 5 years, there has been a failure for 45% of all businesses.

And by 2 years, you might get to witness a 20% failure in all businesses.


Well, be it in a matter of 10 years or 15 years or 20 years or more, a  business is not supposed to fail. 

In that regard, we entrepreneurs need to keep it going and have to ensure they don’t cease their journey. 

Not only is it going to produce a financial loss for your brand, but it will also affect your audience and the economy of your country to a great impact. 

Yes, small businesses also matter, and you people running small businesses do have a duty towards the economy of your country. 

Unless it is a really critical situation, a business must NEVER STOP. 

And this blog is here to ensure that.

Read on.

reasons why businesses

Why New Businesses Suffer Problems and Cease to Operate 

Often businesses start with particular goals, and they end up getting in the wrong place because they lack plans to execute their goals better. 

Again poor investment can be another problem. A financial aid like a loan without a guarantor excluding upfront fees can be a worthy support to your brand. However, can it ensure proper business growth if that has been used inaccurately? 

And that’s not your fault. 

Challenges are there, and we need to overcome them. 

We might if we read the following points.

  • Poor marketing
  • Choosing the wrong location
  • Weak or improper investment 
  • Is it expanding fast?
  • Not being flexible enough 
  • Lack of worthy business plans 

So, let us now discuss these points a little bit.

Poor Marketing

In most of the marketing advice or initial marketing introductions, we get to know that marketing is the tool to reach people. 

Well, that’s okay.

What if the people you reach ARE NOT THE RIGHT PEOPLE?

With marketing, you need to reach your target audience. You need to reach the people who would actually be interested in buying your services of products and generate leads in this process. 

And marketing is said to be more effective when these leads convert into sales. 

What can you do?

Choose niche marketing strategies rather than going for smart marketing. It is a healthier option, and it is found to be pretty successful these days.

Oh yes, ask your digital marketers to study your audience based on different factors like markets and locations. 


And it brings us to our next point.

Also Read 5 advantages of the business advisory services in nations like India

Choosing the Wrong Location 

Often called the regional market strategies, marketing based on locations matter a lot. 

For example, you have a business that manufactures sneakers in a hilly region where people look for work boots. 

What’s wrong? The region or your business?

No one is wrong.

But choosing such a location for your business is.

Before you embark on a journey, you should have a vision of the products you offer your audience. But, you must also need to consider if that is a geographically okay option.

For internet-based businesses and online products, this trait can be minimised. 

But, you still want to study the market and know what your target audience is IN A PARTICULAR LOCATION WANTS.

Weak or Improper Investment

One significant issue modern businesses face is starting with low capital. 

While that is a good idea to kick-start the business, which might offer you some money at the beginning, chances are you can fail in the long run. 

Besides, businesses might lack financial plans and robust accounting systems to keep track of the cash flow. Not analysing the system and the financial sphere of a brand also creates potential problems. 

It doesn’t necessarily have to be that. 

You can ensure your business. Or you can use a better option by taking out a loan with no guarantor and no upfront fees to ensure your business financing is not compromised.

If you finance your brand well, then you can know that the chances of generating revenues you expect are really high. 

And that would keep your brand going.

Is It Expanding Fast?

You need good research, good strategies, good planning and, above all, a good analytics report to find out which plans you need to use to expand your business effectively. 

Your business expansion shouldn’t be an adventure at first, but it should be the intensification of the good things you’re experiencing now. 

You can take risks later.

But, most businesses take risks to expand themselves at a faster pace. 

This results in expanding to areas where the business isn’t needed or where it isn’t a good fit. 

Instead of expanding like that, try improving its already functional areas. 

That will work!

Not Being Flexible Enough

Well, once you have got an idea of the customer base, you should also start preparing new plans and alterations.

It is because customers change.

Their priorities change.

The necessities change and get influenced over time.

Economy changes. 

New requirements get included. 

And yes, customers can get bored with the type of service you provide, no matter how qualified that service is to them. 

So you need to be open to changes and be ready to make alterations. 

But, these alterations are taking risks. 

It’s what you call customisation. 

Although you have successfully known what your customers need, you keep on studying them more to find out how your services can be made more accurate for them.

Lack of Proper Business Plans 

And that may happen when you have not invested in the research and development sector of the brand.

Need money to fund the projects of R&D now? Well, you may take a long term loan for bad credit with no guarantor and fund them immediately. 

Research and development get you to the point of clarity about a future business plan. The more time you invest in research and development, the better doo you get to know a marketplace and, most importantly, its audience. 

And it is because of the lack of proper R&D. Many brands lack a good business plan.  

One more thing! If you have made a good business plan, don’t let it go in the middle even if it is not profitable. Try making it influence your audience by minor changes.

To Conclude 

There are risks to a business, but business can still be conducted well if you keep your eyes open. 

Smart management and staying alert is the key to running a business constantly. 

And you can do it. You surely can.

manu bhadouria

I'm Manmohan Bhadouria, a digital marketer with a strong SEO background. I love writing blogs and stories, and exploring new places and adventures is my passion. I have a soft spot for all kinds of animals.

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