Why do businesses fail?

Business failure is caused by one key factor in 90% of cases: the owner-manager or the management team. In other words, YOU!

YOU hold the key to your business success and YOU hold the key to your business failure.

As a business growth consultant, I unfortunately get called in to help business owners when their situations are mostly dire. I usually hear the following collection of over-used excuses to explain poor business performance:

  • ‘Couldn’t get/ keep the right staff’
  • ‘Competition was better/faster/cheaper/nicer’
  • ‘The bank pulled the plug’
  • ‘A key customer refused to pay’
  • ‘The interest rate on loans’
  • ‘Increase in rent’
  • ‘Our advertising does not work’
  •  ‘Couldn’t keep the customers’
  • ‘The product wouldn’t sell’
  • ‘Too much stock’
  • ‘The overheads’

The real reason for business failure in 90% of cases is managerial incompetence. Responsibility lies in the hands of the person or people running the business. Most business people tend to blame circumstances or everyone else, but themselves.

The truly successful take full responsibility, they realise that it is up to them to make a success of their business. They never use VICTIM language to describe their situation, circumstances or challenges. They LOOK, DECIDE, COMMUNICATE, LEAD and take massive ACTION.

John Lloyd is a business growth strategist, award-winning marketing consultant, speaker, trainer, columnist and author of the book Smart Thinking for Crazy Times.     

Visit John at www.brandstorm.co.za and subscribe to his free newsletter.

Do you need a speaker who will educate and inspire at your next industry conference or a consultant who will increase profits, multiply sales and magnify marketplace positioning? Contact John – john@brandstorm.co.za