Buy Now

Why do Businesses Fail

Bad Habits that Can Doom Your Business

Why do Businesses Fail

Ten Common Causes for Business Failure

Why do Businesses Fail?  Companies open every day in America. Moreover, within three years, many of these new businesses fail.

Ten Reasons Why Businesses Fail

Understanding why businesses fail can result in more success for your new firm. Disability Associates has identified ten reasons. These causes may surprise you. Here is our list:

Under Capitalization in Business Failure 

Being under-capitalized is a common problem for small businesses. However, this has not stopped entrepreneurs from trying. 

I believe you can defeat the capitalization problem with a more supportive Federal government. In addition, confronting the banking industry would help.  Banks contribute to small business failure with discriminatory lending practices.  Moreover, undercapitalization may be an issue best addressed by early planning. 

Fear Causes New Business Failure

Never underestimate the destructive power of fear. Moreover, we all experience anxiety.  Hence, the key is avoiding its restrictive effects. Fear reduces the ability to solve problems. Also, fear interferes with a person’s ability to create novel solutions. A fearful business owner experiencing difficulty will fail to see obvious solutions. Consequently, fear is a destructive emotion that clouds your capacity to reason.

Business Fails From Procrastination

Procrastination is a tendency to delay action required to address an issue. I have discovered that putting off needed effort can quickly destroy a business. Therefore, my advice is to attack problems head-on. Give an issue the level of attention it deserves.  

Avoidance in why do businesses fail

Moreover, avoidance can quickly destroy a business.  Hence, it is worse than procrastination.  The owner with avoidance will ignore reality.  They will pretend that nothing is wrong. Business owners who suffer from avoidance are doomed to fail.   An issue ignored will worsen, leading to unnecessary failure.

Unwilling to Learn

Business ownership is challenging. So, most people avoid business. Business ownership is easier if you are willingness to learn. Failure most often visits the business owner who intellectually retreats. Be prepared to expand their knowledge base.  

Also, some owners convince themselves that they don’t need learn.  For instance, “I already know how to represent a case.” Some experienced representatives don’t realize that there is more to representation than just case processing.  Also, it’s essential for a representative to under business. An understanding of operational concerns assure success.

Unwilling to Seek Advice

Business owners are often bold and aggressive personalities. However, these same characteristics may lead to hesitation to seek advice. I have found that asking for advice can help stimulate creative solutions. As a result, these solutions can improve and even save your company.

Not Asking Customers What They Want

You will note that my company, Disability Associates, offers several customer-pleasing support products and services. All of our product additives were the result of customer feedback. To assure success in your new company, I advise you to lesson to your customers. A company is not about your needs. Moreover, it is about the needs of your customers. Hence, do everything you can to fulfill the needs of your customers, and success will follow.

Lack of Technical Infrastructure

The causes of business failure can be subtle. Often the problem is not recognizing the need for a precise technical infrastructure. In order to save money, many failing companies relay on non specific software solutions.  These non-specific programs do not provide the data or efficiency the company needs to be competitive.   In the field of non-attorney representation, we addressed this technical issue our Olivia software.  Olivia enables the advocate to better control as aspects of their service, minimizing unforeseen reasons for business failure.

Waste Causes New Business Failure

The most overlooked reason for business failure is waste. Most often, a new owner will waste time, money, or resources. It is never wise to spend money on a resource that does nothing to improve sales. Also, if you do not keep tabs on time and materials, you’ll bleed profits.  

Attention to Detail

When representing a disability claim, attention to detail is critical to your success. Thus, ignoring details can lead to frustration and possible business failure. Moreover, this is why we teach our students to use facts to create winning case strategies. Subsequently, details are vital in disability representation because you don’t get paid unless you win.   

We address the tendency to overlook detail in our training in several ways. For instance, we provide a software tool called Case Assessment. The Case Assessor calculates the approximate percent chance of winning a disability case. Subsequently, it helps an advocate avoid accepting unwinnable cases. The assessment tool improves the win rate, resulting in greater success for the company.