Business Success and Failure
Business Success and Failure
Each business persons’ dream is to yield maximum profit in his business may it be small or large business. Business failure on the other hand is a topic most people would rather dodge to talk about but overlooking noticeable warning signs of business failure is a guaranteed way to end up on the wrong side of business existence statistics.
Every business entity deserves a visionary leader. During the difficult times, the business manager needs a clear idea of the end mission and how the company needs to get there. The end mission could be in terms of what the company wants to achieve in future and what it should do to achieve the desired goals (Abbas & Asghar, 2010). A good business leader keeps the end goal on sight not overlooking the immediate needs of the company such as the market needs which leads to business success.
Dilly dallying when it comes to market needs cannot be afforded in any business entity. When it comes to the rate of technology development, the faster a business can produce its services or products, the higher the chances of its success thus delivering to the customers. Businesses tend to succeed when they successfully reach the consumers’ needs.
Successful businesses possess the knowhow to work within a set budget. Managing and keeping a company free of debts it cannot repay is a key to becoming successful. The business should afford to do more developments with the “less” available funds thus maximizing the profits. In a nutshell, external debts which can strain the business should be avoided at all costs.
The catastrophe to realize the market and clients leads to business failure. It is vital to understand the competiveness of the market place and the purchasing habits of the clients. Answering the query who the business customer’ are and how much they are ready to spend in the business goods and services is a great step in the operations of the business, failure to which business setbacks can be experienced.
The greatest concepts cannot be spun into a high income business at times. This simply means introducing a business in an industry that is non- profitable will always prove to be an exercise in futility. When opening a business it is of dire need to choose an industry where sustainable growth can be achieved ( Ricupero, 2002). In business it should be remembered that to survive, positive cash flow is mandatory and it takes more than a decent clue and desire to survive in business.
Overdependence on a single customer leads to business failure. When a business relies heavily on a single customer and he walks out and never comes back impacts heavily on the business. Therefore, incorporating diversity of the customer base in the strategic plan is vital.
Business success impacts positively on any given society through an improvement in occupation in the given area. Occupational levels stimulates a diverse of other average living metrics such as disposable revenue which reduces poverty levels. Employment of the locals promotes word of mouth advertisement for the company if at all the business treats its employee’s fine. This also nurtures a sense of belonging which enhances the trademark of a homegrown business.
Business success cultivates loyal customers’ base and especially those that are locally focused. This ensures that a significant level of financial sustainability is maintained which in return ensures that the company maintains a positive reputation and helps other small businesses maintain their employees thus avoiding retrenchment leading to unemployment.
Presence of business success is felt by the local communities through provision of a variety of facilities and amenities in the locality. Construction of health centers will cater for the healthy needs of the locals and the employees of the same business entity. Construction of a sports stadium will also help the locals as they will be preoccupied with sporting activities. This is a deterring method for those who would otherwise engage in criminal activities which is a safety hazard to the business and its employees.
Business failure impacts heavily on the employees of any given entity. Retrenchment of employees leads to escalation of unemployment levels which increases poverty rates in the society. This leads to high crime rates as people engage in criminal activities in an attempt to cater for their basic needs thus bringing a state of insecurity in the given society.
Business failure leads to the seizure of business assets by banks and other financial institutions if the business had pending unpaid loans. This makes it hard for the company to come back to normal operations which psychologically affects the stakeholders leading to poor health ( Fatoki, 2014). It also interrupts the social services which the company used to offer to the locals such as provision of clean water and affordable healthcare.
In conclusion, business failures not only impacts on the owners and their employees but also the country as a whole. Business progress leads to payment of taxes to the relevant authorities which are used in the provision of social services such as schools and hospitals. Failure of such business means reduced taxes which affects provision of basic social services as a result of inadequate finances.
References
Fatoki, O. (2014). The Causes of the Failure of New Small and Medium Enterprises. Mediterranean Journal of Social Sciences, 922-927.
Ricupero, R. (2002). How to Prepare Your Business Plan . UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT, 1-199.
Abbas, W., & Asghar, I. (2010). The Role of Leadership in Organizational Change. University of Gavle, 1-53.
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Business Success and Failure
Paper details
Identify and Implement rhetorical situations that call for cause and effect
relationships.
Write a short cause and effect analysis.
A Report on Causes and/or Effects That Affect
an employer/ employee.
There are six different scenarios to select from below and you will select one of
them.
What causes a business to succeed or to fail?
What causes customers to choose one product over similar products that
competitors offer?
What causes employees to remain loyal to an organization?
What causes a company or an organization to treat its workers well or poorly?
What are the effects of the way management treats employees?
What causes employees to leave a company or other type of organization
voluntarily? What are the effects of employees leaving an organization?
What causes high or low morale in the workplace? What are the effects of high or low
morale?


