Why most Businesses Fail

[AmorsoloX]

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this is going to be my THIRD post about businesses.. please continue to update and comment on my previous two.. what we need here is to share wisdom.. (from my own experience ra ni ako gi share ha)

by what my title says, what i mean are those start-up businesses. kanang bago-pa gi start

ill be discussing why new businesses fail in a span of several months or years..

1.) WHAT TO SELL AND WHAT NOT TO SELL.. most people who start a business think about the product or concept they will sell.. most fail to view it on the buyer's perspective.. the question should be will the customer buy it? people sometimes look at the demand and what people want, but its only a short sighted vision.. they fail to ask if will customers continue buying this stuff or this is just a fad.. (yes, business like fashion, trends come and go, you wont survive if you stick to one)

example: im pretty sure you rememebr when nauso ang sago shake? dba daghan kaau nagbusiness adto? then what happened now?

2.) GETTING DRUNK ON SUCCESS.. this is 2nd most common mistake start-ups make.. in business, expect your first few months to be that of hardships.. businesses start profit after this period. and may experience high profits for a while.. a new business always attract the curiosity of cutomers, so expect huge profits during this time.. but curiosity doesnt last forever.. ths just human nature.. this period is what i call the illusion of success, tungod kay taas na lagi profit, magtoo ang businessperson nga stable na jud iya business, mopalit daun house, car, go vacation, etc... only forgeting to invest on capital sa iya business.. sa business nothing lasts forever.. its always checks and balances.. naa jud time na kusog and time hinay.. its easier to survive the hinay phase than the kusog phase.. in kusog phase, you lose your sense of proportion and is like beng high on drugs..

example : start-up restaurants near schools.. ever wonder ngano at first kusog kaau then taod2x mawala? being the "in" or "coolest joint" doesnt last forever..

another example : UNO, FQ, n the rest.. self explanatory.. abi sa mga owners and pioneers na it would last forever, palit daun mansion, cars, whatever.. (basaha nlang ither threads ngano)

3.) LACK OF ORGANIZATIONAL PLAN... (to be continued)
4.) LACK OF FINANCIAL DISCIPLINE... (to be continued..)
5.) GIKAPOY ANg BUSINESSMAN... (to be continued)
6.) LACK OF INSURANCE.... (to be continued) (pa help ko dire sa taga IMG, so IMG guys, please say something why business insurance are very important, kamo explain ani beh)

(update ra nako ni soon, sori for the inconvenience)

[AmorsoloX]

naa lang ko giwonder ha..

kana bang some boutiques sa mga mall especially sa northwing sa SM and kanang naa sa groundfloor sa ayala, kapansin mo nga naa uban murag halos wala jud customer mosulod? para nako, it defies the logic of business... dugay na kaau nga murag wala customers pero till now naa pa gihapon...

what do you think guys?

im not a conspiracy theorist but naa ko feeling they are just fronts... ambot.. it defies the logic of business man gud.. kamahal2x sa contract sa space plus operating costs, daun murag in one day less than 5 items ra mahalin..

[glamconnection]

nice thread....salamat sa inputs bro...i learned something on this...

[W108]

naa lang ko giwonder ha..

kana bang some boutiques sa mga mall especially sa northwing sa SM and kanang naa sa groundfloor sa ayala, kapansin mo nga naa uban murag halos wala jud customer mosulod? para nako, it defies the logic of business... dugay na kaau nga murag wala customers pero till now naa pa gihapon...

what do you think guys?

im not a conspiracy theorist but naa ko feeling they are just fronts... ambot.. it defies the logic of business man gud.. kamahal2x sa contract sa space plus operating costs, daun murag in one day less than 5 items ra mahalin..

I don't think they are fronts, I personally know a couple of owners of said boutiques. If you are located in the malls the contracts usually stipulates a lease for a certain fixed period of time, so no matter how slow the business is, you're in it at least until the contract expires. And yes, it hurts for me to see some of these aspiring business owners losing their investments and their employees because they are unable to keep the business going. Some of them even have to resort to loans just to start the business. Those fashion kiosks grouped together (Salad Dressing, Planet Xchange, Maze) I think are sub-lessees, as the lessor is the one who has the original contract with the mall. At least that's what my friend who has a stall told me.

Other stores are just offshoots/branches of mall locators in Manila. Usually the mall operator offers/obligates certain regular lessees (anchor establishments) choice of spaces in new mall locations, and they have to follow the mall operator whenever a new mall is put up. At least that's what I know with SM. I could be wrong.

Just because the business is located in the mall is no guarantee of success.

[PipayNove]

approved

well 4 me,1 ting dat affcts d failure n business is in the attitude of the holder-kanang mag tinapulan

[fritz_sticker]

[QUOTE=

Just because the business is located in the mall is no guarantee of success.[/QUOTE]


bitaw/// true

[AmorsoloX]

@ jodoyz:

please post your business idea here.. i can recieve your emails but i cant seem to reply.. i dont know why.. also, mas maau ng daghan mka comment sa imu idea..

[lorenzoleo]

4.) LACK OF FINANCIAL DISCIPLINE... (to be continued..)
6.) LACK OF INSURANCE.... (to be continued) (pa help ko dire sa taga IMG, so IMG guys, please say something why business insurance are very important, kamo explain ani beh)
(update ra nako ni soon, sori for the inconvenience)

Insurance is a form of income replacement from a sudden loss of an asset.
Let's define the meaning of an Asset since most people are not really familiar with this word.

Asset is something that generates income.
Examples of an Asset:

1.) You - you work hard for the money to provide for your families need
2.) Car - it can be an asset if himoon ug paabangan
3.) House - it can be an asset if himoon ug abanganan

You - you need health insurance and life insurance as an income replacement
Car - Motor insurance, apila na diha kanang mga TPL, AOG, etc.
House - Fire Insurance.

You - is the greatest asset because you are the one that generates money. You must protect your selves first. If you love your family so much then buy the cheapest and big coverage(Term insurance and invest the difference), buy also your health insurance because kasagaran ma purdoyan sa mga family kay kanang naay masakit sa pamilya. Ibaligya ang mga yuta para lang igasto sa hospital. Create this plan first while it is still easy. Most mistakes of the Filipinoes don't plan while it is still easy adto na mag ratol2x ug palit insurance kung naa nay hitabo but sorry, insurance people doesn't cover you when the problem arrives. black and white lang ko anang pag cover namo, dili mi mu hatag ug coverage sa cliente kung naa na diha ang problem(example: sakit2x, etc.). Plan while it is still easy.

If you want to build ang strong Financial Foundation, this is the solution below.


Inorder to have protection but you don't have enough income, find a way to increase your cash flow. There are two type in increasing your cashflow, one is reducing your expenses and lifestyle change and the other is create another source of income.
Get income protection(health, life insurance), eliminate debts, create 3-6 months of you income in the bank. And lstly build up your investment. You must have protection first before building you investments. Incase naay mahitabo sa investment, naay emergency fund ug protection.

If you want to know more about Financial services, you can set an appointment with me.

[lorenzoleo]

Amorsolox, I add ni sa failures in business

7.) Weak Leadership can cause failure in business.

[jblim1980]

salamat sa infos.;....