Common Causes of Business Failure a Business Coach Will Help You Avoid

The topic of failure is something that most of us don’t want to talk about. Business owners, however, don’t have much choice but to pay attention to and deal with some obvious signs of business failure. Ignoring these signs will surely diminish their chances of surviving a competitive market.

To better prepare you for the worst situation your business could be in, take a look at this list of the most common reasons businesses fail:

1. Inability to understand customers and the market.

As a business owner, you need to have a clear idea of the industry you’re penetrating, and how you’re going to win against your rivals. Simply put, you’ve got to know your market space and the buying habits of your customers. Having this knowledge will enable you to customize your strategies according to their needs.

2. Launching a business in a field that is not that profitable.

Sadly, there are times when even the best business ideas cannot turn into a profitable business. Thus, you have to do enough research about your chosen industry, so you would know if you can have sustained growth in it. Remember that it takes more than passion and a great idea for a business to survive and succeed.

3. Having a reactive attitude.

Business people can’t simply wait for trends to evolve and then react to them. It is vital that you know how to anticipate what’s going to happen in the field you are in. Also, you need to remain innovative and aware of your competition.

4. Dependence on a particular customer base.

While it is good to focus on your current customer base, it doesn’t mean your business should rely only on them. What if they eventually find your products or services irrelevant? To prevent your business from over-relying on a single type of customer, you should continuously diversify your customer base.

5. Lack of customer strategy.

Customers have a great influence on your business, but do you know how much? Are you aware of the things they like and dislike about your business? These are the things you need to know so you will be in a better position to provide them with all their needs.

6. Poor management.

Managing a business involves a lot of aspects – planning, organizing, directing, controlling and communicating. As a business owner, you need to be aware and on top of each of these aspects of your business. Sure you can delegate people to be in charge of each of them, but still you need to know everything that’s happening in your company.


Running and maintaining a business is definitely not an easy task. Knowing the common downfalls in businesses will somehow teach you what you should and should not do to make sure you stay in business. Also, working with a business coach will be a great step towards building a stable and profitable business.