With this current Economy now, many Small Businesses has closed down due to many reasons. Being in the Tourism trade for quite some time, I have seen many friends tried few businesses and close it merely just months or less than a year.

Source

This was one of the topics during my breakfast with my buddy today whom also struggling to make ends meet in the tough industry.

I personally had my ups and down's and also has a fair share of few businesses close down too. Today I would like to share my personal experience on Why Small Business Fail?

After finishing writing this, I try a search for other fellow steemians who wrote about this subject. For your info, this is an add-on for what other steemians not covered. You may search their post HERE by @jaffa8 , another write up by @channy HERE and another fellow steemian by @coconut HERE. Another spot on to read is by @forexbrokr HERE

Source

1. LACK OF PLANNING

This is crucial when starting a small business, a lot of entrepreneurs thinks we can do it by remembering everything in their head, but unfortunately we cant absorb the information as much we want. It is better to draw a plan of heading for 3 months, 6 months or even 1 year for your business.

2. No Leadership Skill

Being a Small Business Owner is crucial to has Leadership skill, even opening a Car Wash. You need to monitor staffing, timing per car to wash, service standards and etc. It is important that business owner takes pride in leading his/her team to aim they want.

3. Fails to Manage Staff.

Human Resource is vital, not just need to know how to employ good staff. Business owners must also know how to manage staff, lead by example, following company policy and rules. Training Customer Service must be taught to staff giving encouragement of hope, monetary driven such as the commission to achieve companies target also crucial.

4. Wrong Partnership

Sometimes it's not about the Staff or Product you selling, it's not about the Place or Location. It's sometimes a fact that Your Partnership (Business Partner) is the WRONG one. Its just can't work, there is a saying once been say " Friend is Friend, Business Partner Will not Work". No matter how you try to patch and understand your partner, it will never work.
Similar to Married Couple Divorce - its just doesn't will work out.

5. Loss of Focus

This is most common mistake I hear so far, "I'm selling this business due to a commitment to other business". Business Owners always tends to be greedy (in which is common), try to open many small businesses, try to put their 10 fingers into ten businesses. Some may survive but some just can't do it. This will lead to closing down the business or selling it off.
Doing few business and be Master of All Trade is good (sometimes), but nonetheless, it will lead to Loss Focus and Direction of your Small Business.

6. In the End, No Passion, No Enthusiasm, No Fire.

When that happens, the belief in the business will slow down. Given the fact, much other reason involved, for example when the Government implements Good Service Tax (GST), an old small enterprise (Such as Chinese Medicine Shop) cant embrace it GST finally called it a day. Passion has died down for that fact.

7. Cannot Accept Globalisation or Changes of Technology

Similar to No. 6, those cannot embrace the IT Tech world will lose out. A News Vendor close to my home closed shop because literally, people read news online now. The percentage people sign up for News Online has quadruple since 5-8years ago. Those small Bed & Breakfast still do not register themselves in Online Booking Agent such as hotel.com, agoda, trivago, or trip advisor will definitely loss out.

8. Living in Denial

This is serious, and this is a NEW thing. Due to technology changes so fast that they cant embrace it faster, they still say its ok, I have my way (living in denial). People moving forward for better, but some entrepreneur wants to stay still. This will make the company goes down really fast. Entrepreneurs cannot grasp the changes faster, which makes them loos focus, out of strategy, keep investing the olden ways. Sooner or later its too late by then.

Source

If you do have other comments please don't hesitate to share here with a comment below !!!
May you have a great week ahead !! STEEM ON !!