8 common causes of entrepreneurial failure

generally speaking, from the initial stage of the capital allocation and scheduling, talent recruitment, marketing strategy, management skills, and the subsequent changes in the market trend, competition, coping strategies…… And so on, are likely to lead to the establishment of the enterprise you can not continue to survive the fate of. The following is the most common cause of failure in the entrepreneurial process:

1, short of capital.

entrepreneurs underestimate the financial need of the financial budget, the lack, at the same time in operation or production is also unable to make effective use of funds, it is difficult to create earnings.

2, lack of market information.

3, too many defective products or defective rate is too high.

due to poor product too much, or bad rate is too high, the cost and the loss is too large, coupled with the beginning of products is also a lack of visibility, resulting in unmarketable products, resulting in a large number of inventory accumulation.

4, the wrong strategy.

improper corporate values, ineffective management and sales strategy, the competitor estimation error and so on, including the business philosophy and competitive strategy mistakes, because these strategies are related to an enterprise of vital importance, therefore, this is the most important cause of failure. Once entrepreneurs have greater errors or accidents, often lack of experience and solutions. Therefore, for the first time entrepreneurs, a wrong strategy can be fatal.

5, product elimination rate is too fast.

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