Explore BrainMass

Three reasons businesses fail

From the scenarios, discuss two (2) business challenges you identified from Chris and Erica's weekly scenarios, and suggest how you would effectively address these issues.

- Discuss three (3) reasons why some businesses fail, and suggest how business owners should address these issues in order to avoid pitfalls.

Solution Preview

I do not know anything about the scenarios, but I can give you three reasons why some businesses fail.
1. The do not have a good plan.
2. They do not scan the environment.
3. They do not promote their core competency effectively.

Every business needs a good, solid business plan. However, the plan a business starts with is not the plan they should be working from after the first year. A plan must be updated with the new goals and objectives. It should note what worked and what did not in the past as a template to create the future. A SWOT type analysis is very important to do on a regular basis and leads into the second reason a business often fails. A plan with a clear direction, a budget that reflects what a company has and expects, can help guide decisions, especially those decisions that are necessary when something has not occurred. For example, Todd, Inc has created a business plan to open. After a year of ...

Solution Summary

A review of three reasons why businesses fail.