Why small businesses failed in 2019
Businesses have closed 2019 calendar year for transactions, many businesses have closed up for some reasons while few are struggling to taste 2020. The reasons most of these businesses failed to achieve their business goals are hereby detailed.
No Business Plan
Whether it is written or not, business plan is very important. It details the objectives and significance of establishing a business, in the first run.
Business plan highlights when, what, which and where any business oriented event take place, in the course of promoting a business.
Some businesses that failed to survive 2019 business calendar year, did so, because they failed to ride on a robust business plan.
Business plan should place priority on marketing strategies, marketing cost and marketing media.
No matter the size of a business, marketing is still essential for the business' survival. Businesses survive on marketing and any business that fail the test of marketing shall surely collapse. And hence, the reason most of the small scale businesses collapsed with 2019.
Some Small scale businesses have either dissociated themselves from entering into the marketing streams being used by the giants in the industry for the fear of cost. However, the most interesting is commitment, not necessarily the money.
If giant company A had spent much on Facebook ads to actualize her 2019 industrial breakthrough, there is nothing wrong with small company B spending the little she had on the same Facebook ads though, with more strategies and hardworking.
Small scale businesses need to be more strategic and more available at work, in making the business success.
Informal Business Account
One major factor that killed small scale businesses in 2019 is the nonchalant attitude of keeping a clean account of the business transactions and expenses incurred both by the business and the business owner.
Small scale businesses see taking proper transaction account of a business as a sole responsibility saddled, only, to the large scale businesses. The fact is, the principles of business you obey at the Small scale stage is what you group to comply with, when the business grows large.
Small scale business owners, often, failed to caution themselves on how much they spend from the business cover, when and on what they spend the withdrawn amount. These are vital business decisions that determine the sustainability of a business.
Glaringly, it is feasible that failure to work on a well structured business plan, Poor marketing and incessant withdrawal from the business fold are major factors that lead to the failure of small scale businesses in 2019.
As we commenced 2020, on a good note, small scale businesses should do everything to emulate the large scale businesses by formulating a robust business plan, developing lucrative marketing strategies and designing a presentable accounting system to see the business making a one time breakthrough, in 2020.
Written by Ibraheem Sikiru
Published on 1/1/2020 8:45:39 PM