Why Do Firms Fail

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Why do some firms succeed and other fail? Success or failing of a company or business depends on certain factors which are generally related to people. Key points that companies should follow are: (1) Marketing- the general strategy for a business is to research the market and adjust the product for circulation to match this market. Then it can of course promote its way into the desired market, (2) Planning- again this is an important key if you haven’t heard of the term “failing to plan is planning to fail”. Planning ahead gives you clear goals that the company can abide by and will identify problems early on so a company can do something about them, (3) Change- being afraid of change most likely will not help you in the business sense, on a personal note a company has to train, develop new skills and keep up-to-date, in a wider note sense if the market you are in starts to change you have to change with it to make the most of your business. For example, in average small businesses a person with a general hobby or is good within a specific field can open a small business to think of getting more money in the long-run. Though this is not always the case, small business owners will make cut corners by not acquiring good accounting, legal, and marketing help. This in turn makes the workers full-time, each hour not spent within the company is a loss in profit. Eventually, the workers get bored, burned out, or run out of money and a business fails. There are many reasons why businesses fail but some are: 1. If there is not a market for that specific product. 2. If the cost of production does not allow a profit to be made. 3. If there is no investment to stay competitive. 4. Other more efficient suppliers enter the market. 5. A lack of skill of the staff and

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