Why 90% Of Businesses Fail Miserably

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Anyone can start a business, but not everyone can lead his or her business to success.

You can start different types of businesses nowadays, but still you got to have the character and skills that successful business owners have – skills that Carnegie, Rockefeller, and Ford had back then, and what Gates, Schultz, and Page have now.

Different studies today state that most businesses fail within a year or two after they open, and many of those that last more than two years still fail to reach the age of 10. Not that great of a motivation for those planning to start a business, right?

Now, there are a lot of factors that can affect a business and decide whether it’s going to succeed or fail. In this article, I’m going to discuss the factors that can sink a business, and the ways you can do to avoid them.

Poor leadership skills

One of the reasons why most businesses fail is because of the head of the business. If you thought that the only time a business fail is because of the employees, then you’re wrong. Sometimes a business’ failure can be blamed to the owner too.

A successful business owner is a good leader who knows what his business needs, and is a person who can create a work climate that can encourage everyone in the business to be productive at work. He has a skill in hiring the right people, and keeping them happy at work, so that they can perform well and make the business better.

A great leader is good in managing time, people and egos, skilled in strategic thinking, can interact with other people very well, and able to make his vision a reality.

Lack of proper funding

Some business owners underestimate the importance of getting the proper funding for their business. Lack of funds can restrict the business’ capacity to perform and grow.

Entrepreneurs should try their best to properly estimate the amount of money needed for their business to launch. They should also know how much will they spend for their business to stay. It is recommended that entrepreneurs have the necessary fund to keep their business going for at least two years.

Poor Marketing

Advertising is vital for a business’ success. If you think you’re not good at selling your products and/or services, then you should seek assistance from a marketing expert that can help you promote your business better.

Lack of sales can be a warning that you’re not marketing your business the right way, or worse – it can be a sign that your business is in jeopardy. Getting help in marketing your business can also be as important as having a proper sales team.

Poor location

A bad location can also cause a business to fail. If your business relies on location for foot traffic, then you’ve got to do a better job researching and finding the right place for your business. A bad business on a great location may have better chances of succeeding than a good business on a bad location.

You must keep in mind that in today’s world, your location on the Internet or your online presence can be as important as your physical location. The good thing about that is you can build your online presence with the help from the right people.

There are other reasons why businesses fail some of them are the failure to develop a great business plan, lack of credible employees, inadequate credit control, unexpected growth, and the lack of product diversity.


Some businesses do fail, and that can happen every day, so it’s a very normal thing nowadays. Just remember that your business can avoid the same fate, your business can succeed, and it all depends on you – the business owner. Not all businesses are bound to fail. With the right funding, planning and management a business can thrive and bring its owner/s a lot of money.

Author Bio: Mark Ross is the founder of the personal finance blog, the Money Saving Dude. The blog aims to help its readers save money and “more”. If you want to find out what this “more” is all about, then visit his site now. You can also connect with him on Twitter and if you want to.

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