Why Your Business is Not Making Enough Despite Your Marketing Efforts?

Last Update: February 11, 2021 Make Money

Coming up with a business idea and plan may time be frustrating. It may even be more frustrating when this business fails to make enough returns.

One may have put up a marketing strategy that would publicize the business, but the outcome turns out to be discouraging. Marketing may be an expensive venture, so it may be very disappointing when there is no positive change.

In other instances, however, a new business will need some time to get well established and become more competitive. This will require an owner’s patience and persistence to allow some time window for the business to grow.

In this circumstance, one should try to identify instances that may lead to your business’s failure. In the process, you may be able to identify the areas that require some improvements and eventually turn your business into a money-making venture.

Poor Planning

A business plan serves as a road map to your success. It is advisable to always prepare a business plan before beginning your business. A wrong business plan can be the foundation of business failure. For example, underestimating financial projections can make a business fail to break even, which means that they will always spend but receive cash inflow.

Another example is a low-risk management strategy during SWOT analysis. When doing a SWOT analysis, one ought to identify the business’s possible threats and devise a risk management strategy to mitigate the threat. Therefore, failure to identify the threat and how to mitigate it serves as a factor to business failure when such a threat.

Poor Management

The business may not know how to execute some business operations, such as inventory control and monitoring and evaluation techniques. This deprives an organization of highly skilled professionals who are capable of delivering high-quality services.

The employees may not have been motivated because of issues of low payment. This may greatly influence the delivery of services to the customers and eventually lower your income.

Insufficient Capital

Equity and debt capital are the basis of financing a new venture, and its existence determines the success of a business. Lack of enough money means that an entrepreneur will not acquire enough assets that will enable the company to run smoothly and enhance receivables.

It can be a limiting factor when it comes to the employment of new staff. This may lead to insufficient labor, which causes poor delivery of services to customers hence less returns.

Poor Management of Records

Good record keeping is the key to the success of a business. Poor keeping of records will lead to the loss of important information for business planning. When records of a company are not kept well, the figures used in financial forecasting will not be accurate. This will lead to wrong projections and unrealistic budgets. Poor keeping of records leads to database information leakage to competitors who can limit the market share. This can lead to business failure. This information is also important to stakeholders such as shareholders and auditors.

Poorly Located

The closer a business is situated next to the market, the better. The most business fails because of wrong facility configuration concerning where the prospects are situated. Therefore the costs of transportation of commodities to the market become so high because the market is far away and the customer needs are supposed to be met in the shortest time possible. This leads to high costs, making it hard for the business to break even in the long run. The company will wind up due to high overhead costs because the expense is more than the sales.

No Value Addition to Products

Value addition adds to a commodity’s value in terms of the price charged on a value-added item. Lack of value renders a business’s product normal, so they cannot fetch reasonable prices. This leads to low returns because of the price attached to a good which has not undergone value addition. However, value-added products capture a lot of value and therefore fetch reasonable prices, which increases a business’s returns.

Poor Pricing Strategy

Price skimming is one strategy of pricing that can lead to business failure. Setting the prices of a commodity above that of the market leaders is likely to have negative returns, leading to business failure. Therefore, it is advisable to set prices of an item after thorough market research and product testing in the market.

It is important to consider the market segment in case one is a dealer of multiple products. This will help set up the best pricing strategy for product demand in the market segment.


Strong competitive strategies from established market leaders can close the business niche of a new business venture. As the business struggles to pick its own customer base, the market leaders will be pulling the customers in its direction. This can be a significant threat to an entrepreneurial venture because one lacks a good customer base. This will lead to low returns and eventual business failure.

Failure to Meet Customers Needs

In every business, the customer is the king. This is why the company has to direct all its efforts towards satisfying the customer needs. If a business produces what is contrary to consumer specification, it is likely to incur losses due to low sales.

Low Adoption of New Trends

A business needs to be dynamic to incorporate emerging issues into its system and products.

Low adoption of new technological trends into a business leads to insufficiency in service delivery. For example, using accounting software to execute financial operations reduces a company’s costs in employing and paying a few manual data entry accounts.

Adopting new security measures such as installing CCTV cameras can reduce insecurity issues, which will decrease theft issues. Conclusively, low adoption of these technologies can lead to losses for many business assets and cause business failure.


In conclusion, most businesses fail because they don’t adopt the aforementioned aspects that should be avoided to achieve financial success in the business venture.



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