I have a final paper to right in my english comp class on why 80% of new businesses fail. I was hoping to see if any business owners could give me some info on why their business was a success or what led to its downfall. please include some info so that i can site you and a source in the paper. thanks!
2007-04-24 02:15:18 · 4 answers · asked by Anonymous in Business & Finance ➔ Other - Business & Finance
The oldest business rule in the book is to find a product the public needs ( or believe they do) and sell it to them for a fair price. With companies like walmart, it makes selling the basics more difficult. Grocery suppliers have different prices (some do) according to volume purchases. Alot of time small business wholesale cost is higher than what you would pay cost for at walmart or sams for instance. So to get by this , people try to think of specialty items but with specialty items comes higher prices. It is harder to project sales on non essential things. Economy plays a big role on this. Mark up is the biggest problem. In the clothing industry or housewares for instance, markup is high sometimes 100 to 200%. Our store has been in business for 52 years. Secret: Its better to sell 1000 of something at a 30% mark up than 50 at a 200% markup, then customer service, Alot of people close in the first 6 months . It takes patience and alot longer than that to build customer loyalty.
Woodys Mini Mart, Mineral Springs Arkansas
Michelle Arnold
2007-04-24 03:08:48 · answer #1 · answered by jamieormichelle 1 · 0⤊ 0⤋
One of the reasons why businesses fail is the people they hire. Often their credentials are unchecked and this can lead to pilferage. Another is going into business with an associate who cannot be trusted. In my family, we had the misfortune of going into business with a friend of the family. We noticed that many items were missing (including money from the cash) and then we set him up. We sent a lady to purchase shoes who told the associate she was from the US. She paid in US $. She asked for a bill for customs but he advised her not to mention that she had purchased the shoes in Canada and did not give her a bill. Instead, he advised her to wear the shoes prior to crossing the border so that the shoes didn't look new. After counting the cash at night, there was no US money in the cash register. He had pocketed the US money and, of course, if we hadn't set him up, he would have continued to steal. Later we learned that he was taking shoes from the inventory and/or selling below cost.
Another reason is that people who go into business don't know much about it. Often, buyers are inexperienced with the quantity to purchase and/or do not bargain effectively.
Yet another reason is that there's no research done prior to opening up the business to determine if there's a demand for the goods or services the business provides.
2007-04-24 02:42:09 · answer #2 · answered by maryc 3 · 0⤊ 0⤋
Well.. like the primary reply mentioned, take a industry flair scan to discover out what varieties of companies you might be effective in. It can also be performed, with time, persistence and begin-up coins. I began a puppy day and well being care corporation that I ran for three years after which bought a most important element to my worker.. and I nonetheless stay a silent companion preserving the finance finish of matters at the same time she and the leisure of the staff run it. It's nine years historic and developing. It did take time and study although. First you need to come to a decision what you're keen on, then start networking with folks who possess the identical varieties of companies.. and move from there. Most companies take a well 12 months to relatively get off the bottom.. so be ready not to see any go back in earnings for a minimum of a 12 months. Anyone with ambition can do it. The high-quality recommendation I used to be given whilst I began used to be.. "You get out what you set into whatever.. " Best Wishes!
2016-09-05 22:16:37 · answer #3 · answered by ? 4 · 0⤊ 0⤋
i worked for an auto shop that just opened they hired 4 techs and 1 oil chainge guy with out a customer bace there was also ofice staff they spent like crazy on advertisments all the money we earned didnt cover the ad costs and rent in less thain 1 year they lost $250,000 we only had 1 tech (me) and the oil guy and we wernt buisy
thats when i started my shop i coverd warrantys from the shop that went under did minimad ads relied on word of mouth i havent advertised for 20 years and im verry buisy if you do good work at a reasinable price they will come
whats killing my buisness now is all the people who dont think they need to pay there bill
2007-04-24 02:57:31 · answer #4 · answered by mobile auto repair (mr fix it) 7 · 0⤊ 0⤋