36 Reasons Why Some Businesses Fail

The healthcare businesses are the need of the moment and sectors regarding the same. For ex: Pharma and the Food industry are being regulated all throughout with a chain of whole-sellers, suppliers, vendors and shop-keepers to reach the masses with a full-on bang of immediate bare essentials even during the Lockdown.

But what about the other businesses? When will they be getting back once the necessary precautions are over? Will the profit margins actually have a graph to be followed? Or is there a focal point for all that has just gotten stagnant? Will they soon resume?

We’re here with the figure of 36 reasons; Why precisely 36?

  • Considered a negative connotation whenever it comes to dealing with problems.
  • As the numbers “3” and “6” look like they are showing their backs to each other Is a denotation to describe conflict.
  • Number of reasons to mention; that take your business to negative growth.
  • 36 reasons to avoid a flourishing business and a better graph.


Let’s have a look at the basics; that are major eye-openers to focus on, when the Lockdown ends!


Building something people don’t need: Anything that has to do with your interest won’t benefit upon the terms of what people might not just want; but have a deep craving for!

Highly poor or NOT the right team: Wrong hiring can be disruptive, negative, costly and most importantly making you an ‘operator’ and not a ‘controller’ of your business.

Lack of Focus: Too much work, Multiple products, Several markets and Undefined territories will only divert you from creating worth a benchmark and hence prove to be degrading.

Stuck in legal issues: Keeping note of under what government compliances does your business come with poorly made Trademarks, Certifications, Papers and Contracts lead you in for long term losses.

Failure to execute Sales & Marketing: Poor scheme, inability to re-sell, cross-sell and up-sell your plan, poor pricing strategy and failures to execute it in the market; while reaching to the expensive fields of Television, radio and digital marketing of which, the campaigns are not pre-examined that lead to less customer approach.

Bad location: Sometimes, too much of a good location proves bad, as it adds up to the cost of running the place and hence not making peace with the income it is able to generate.

Getting Outcompeted: Not measuring competition and entering a market that is already at risk of being outrun with, first of all, a bad agenda and too much competition already available.

Not having the right partners or co-founders: The partners in a firm should be complementing each other’s weaknesses and strengths that allows a long-term harmony and filling the empty spaces that one of them is failing at the moment. Precisely one being the Idea man while other being the action man and vice versa.

Cash burn or NOT being able to raise money: Running out of funds, poor money management and inability to raise funds for the business are initial red flags.

NOT learning from your failures: Not improving your cycle of Plan, Do, Check, Act. Not being able to create a J-curve upon your failures and being open to change for continuously evolving.

Raising too much money: Unnecessary funds in the business lead to bad expenditures and illogical spending patterns.

Lack of planning: Not planning your journey ahead and stepping into unknown endeavors that might prove harmful to the brand as well the face value.

Chasing Investor or User: Businesses are made of faces wanting to accept it into their lives rather than people unsure about wanting to invest in it without a forecasted outcome.

Failed leadership and Strategies: Finding a way that works best for your product and the company altogether and choosing the wrong approaches to get there.

Wrong Alliances: Getting involved with weak partnership and less good but more harm barter scheme is depreciating in itself.

No differentiation: The new and old launches are at the negligible differences from each other and loses its character to be showcased at all.

Wrong business model: The module on the shoulders of which a business stands has to be the concrete base upon which the foundation lies, and requires a great deal of research and understanding.

No revenue Model: The income possibilities and the ways of managing them with a measuring scale, needs to be considered initially.

Over-expansions: Expanding your business without the right margins is like committing suicide and lead to all the expansion to shrink at once.

Increasing bad debts: Measures that lead to losing money are cordially connected to the money at stake, clear bad debts before it gets too late.

Macroeconomic factor: The external factors of which you are nowhere responsible for. Ex: The coronaVirus Pandemic.

Slow execution: Running after a train that has already left the platform. Reaching out for ideas of which the market has moved ahead of and does not accepts now.

Wrong target and positioning: Realising your own positioning and getting trapped into wrong targets without the knowledge of which domain do you belong to. For ex; Premium goods, Chinese goods, Opportunistic value or value for money product

Premature scaling: The following analysis when your business is not ready to be examined yet and drawing borders restricts the upscaling growth

Ignoring users’ feedback: Implying the only approach and outcome you know while not paying attention to its versatility is a big goodwill loss

Lack of profit or Cash: Less profit margin or payments not coming on time are major reasons for failures

Wrong timing: Launching a product when the masses are not ready to accept. They might need it in the future but would not value in this date

Inadequate Inventory management: Piling up the productions and not being able to cash it stops the cycle altogether. Keep track of inventory and don’t stock up on unnecessary good

No passion: More profits but no compassions leads to nullified motivation in the longer run, hence facing deep negative effects

Scaling without Technology: Not marking the products with relation to technology hence facing a backlog due to inadequate supply chain

Personal use of business fund: Flowing the money into personal pleasures will only lead to a spoiled balance and least professional attitude, hence not being able to pay to the ones who work for your business and lack incentive

No succession planning: Not preparing any successor for the business who would take care of things behind your back is a big problem when the uncertainties hit

Failure to identify Opportunity gap: A futurist approach and being prepared well for the opportunity to arise when the time is right but you are not prepared for it due to lack of sense of measuring the gap between preparation and the final showdown

Bad product experience: NOT having a customer reach you again and again with a bad product experience loses the goodwill bit by bit

Untrained or Disharmonious team member: Office politics ruins the harmony even within a skilled team that leads to a big-time crash for the company and lazy deliveries which are not at all a sign of success, as ultimately team is the one which will carry you ahead

The long-term value of a customer: Unable to have loyal customers and constantly reaching for new customers is a sign of mistake repeatedly done, not being able to establish a smooth flow in relation to business upliftment, as it restricts the growth too much


If you stayed till the end, consider yourself hooked onto a journey to betterment for your business and overall insight.

Referential guide taken form Dr.Vivek Bindra and putting them one by one for precise business analysis and better understanding when most needed. 

Quarantine can prove to be a time of fruitful activities. Make it a moment of analytical start to a fresh face with your flaws, identified and unknown errors, rectified.