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The Top 4 Reasons Start-up Companies Fail?
January 6, 2011, 7:28 pm
Poor Market Research
Many businesses flop because they neglected to plan properly. Detailed market research must be undertaken in tandem with preparing a good business plan is key to helping you manage your business right from the start. A good business plan should highlight goals, whilst also putting opportunities in perspective and being pragmatic about the potential of the market in which you operate.
Failure to undertake sufficient market research often leaves businesses with improbable expectations in terms of unattainable turnover and profitability which leads to their inescapable collapse.
Bad Debts and Cash Flow Issues
Organising your cash flow effectively is an essential part of sustaining your business. Late payment of debts may be beyond your control, but there are possible solutions such as invoice discounting which allows you to free up money tied up in unpaid invoices to keep your cashflow regulated.
Failure to Meet Customer Expectations
The success of your business depends on attaining the all essential turnover. The sale of goods or services to your potential customer requires fulfilling their need. Therefore the product or service offered by your company needs to meet the expectations of the end-user. So in order to generate sales you need to both market and produce a product that will successfully meet your customer’s needs and assure them that your product does just that.
It is important to note that the expectations of your customer will generally vary over time. They will also differ from country, market to and across demographics. Failure to adjust your product to changing times or requirements may lead to falling turnover and declining profitability.
Lack of Finance
Many entrepreneurs adequately assess the amount of capital they need to establish and maintain their business. This is highly evident now in the advent of the economic collapse and the withdrawal of “easy credit”.
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November 19, 2025, 8:19 am
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November 19, 2025, 12:00 pm
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November 19, 2025, 12:00 pm
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November 19, 2025, 1:33 pm
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November 19, 2025, 1:35 pm
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December 1, 2025, 12:38 pm
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December 1, 2025, 12:42 pm
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December 1, 2025, 12:46 pm
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