Why businesses fail.

Being a student in the business field looking into potential career opportunities I have considered it all. I have considered owning my own business one day and while looking into some statistics I came across a quite alarming one: 8/10 businesses fail within the first 18 months. That's 80%! I was dumbfounded when I read this statistic. I couldn't stand to just leave it at that, I was dying to read into why this was an accurate fact. After researching I found the following results discussing the reasons why:

• Not building a strong relationship with customers. Customers are your business, without a customer base a business does not exist. Many businesses fail to meet customer needs because they fail to maintain a good understanding of their customer.
• No differentiation. What makes your products/services different than what's already out there? Differentiation is a slow but sure killer of a new business.
• Failure to communicate. So lets say you've mastered the differentiation you now need to communicate it to your customers. Customers won't buy things that they have never heard of simply because they don't know it's out there.
• Management failure. If your management fails to complete duties or quits their job you have to step in and fill that position. As a business owner you are the highest manager and overseer of the business. You have to know how to fill each roll if it needs to be filled.
• Unable to make a profit. If you are unable to make a profitable business model your business will surely come crashing down. Minimize your start up costs by limiting your cash outflow. You need to think and move quickly in order to best act on your investment. 

works cited:

Wagner, Eric T. "Why Businesses Fail." Forbes. Forbes Magazine, 12 Sept. 2013. Web. 27 Oct. 2015.