Reasons why
Businesses Fail

Here are a few reasons why Businesses can be unsuccessful


  • No mission, no clear goals, stated objective to make a pile of money.
  • Customer not perceived as a top priority.
  • Loss of momentum in sales, poor sales performance.
  • Impatience, trying to get rich quickly.
  • Operating outside own area of excellence, diversification into non-core businesses.
  • Failure to focus on priorities, failure to focus on the 20% that delivers the 80%.



  • Failure to establish competitive advantage, such as: better quality or cheaper or faster or nicer etc.
  • Product not suited to customer requirements.
  • Poor quality of product and support.


  • Failure to identify customers.
  • Reactive rather than proactive selling
  • Incomplete marketing strategy, poor sales programme.


  • Poor leadership, lack of integrity and competence of key staff, lack of commitment and persistence.
  • Mismanagement of working capital.
  • Failure to analyse and respond to trends, changes in the market place.
  • Failure to control overhead drift.
  • No business plan
  • Inadequate financial records, poor budgeting, poor cash control.
  • Action without planning, failure to collect relevant facts.
  • Paralysis by analysis, too much analysis, not enough action.
  • Poor relations with staff and employees, poor communications, command and control mentality.