The underlining reason

June 24, 2008

Businesses fail: fact. But the reason why is more important. Whenever a new business starts up it will usually run at a loss for the first year, since there will be start up costs and promotional costs (both for staff and business). There are many excuses businesses try and use in order to pretend that the reason their business failed wasn’t their fault.

· A key customer refused to pay.

· We could not afford to invest.

· The product would not sell.

· We had too much stock.

· The overheads were too high.

· We were faced with an increase in rent or interest rates.

· The bank pulled the plug.

· We could not get or keep the staff.

The real problem is that the person in charge decided not to look at the underlining factors. When finding the real reason behind things that are happening, have happened or may happen there is a key three letter word, WHY?

Why can be the most powerful word to a failing business. Instead of simply saying “a key customer refused to pay” the business needs to ask it’s self why that customer did not pay and is it possible to amend that problem.

Finding the underlining problem is essential in order to maintain a business.

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Posted in Believe it or NOT, Business/Stocks