Please enable JavaScript.
Coggle requires JavaScript to display documents.
WHY BUSINESSES FAIL? - Coggle Diagram
WHY BUSINESSES FAIL?
lack of long term funding
run out of money
often underestimate how much they need to spend to attract customers
(advertising, running offices, paying staff)
Initial errors
Early mistakes can cause failure
Example: choosing wrong products
lack of management skills
failure because of manager's poor decisions
Example: wrong pricing method
no reputation
Hard for a business if it has well known brands in that market
start up businesses may fail
market conditions
harder to enter some markets
Example: banking market
economy
due to lack of customer spending
causes reduction in the revenue
large competitors
smaller businesses can be squeezed out
larger businesses can afford marketing, new products, etc