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

Last Update: May 14, 2020 Make Money

Coming up with a business idea and plan may times 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 so that it gets well established and become more competitive. This will require an owner’s patience and persistence so that he can allow some window of time for the business to grow.

In this circumstance, one should try to identify instances that may be leading to the failure of your business. 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. Wrong business plan can be the foundation of business failure. For example, under estimation of financial projections can make a business fail to break even which means that the will always spend but receive cash inflow.

Another example is poor risk management strategy during SWOT analysis. When doing a SWOT analysis one ought to identify the possible threats to the business and device a risk management strategy to help mitigate the threat. Therefore, failure to identify the threat and the way to mitigate it serves as a factor to business failure when such a threat

Poor Management

The business may not have sufficient knowledge on how to execute some of the 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 have not been motivation because of issues of low payment .This may have a great influence on 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 capital means that an entrepreneur will not be able to acquire enough assets that will enable the business to run smoothly and enhance receivables.

It can be a limiting factor when it comes to 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 success of a business. Poor keeping of records will lead to loss of important information for business planning. When records of a business 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 lead to database information leakage to competitors who can limit the market share of a business. 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. Most business fails because of wrong facility configuration in relation to 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 which make it hard for the business to break even in the long run. The business will wind up due to high overhead costs because the expense is more than the sales.

No Value Addition to Products

Value addition adds on to the value of a commodity in terms of the price charged on a value added commodity. Lack of value renders the product of a business to be normal and therefore they cannot fetch good 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 good prices which increases returns of a business

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 which can lead to business failure. Therefore, it is advisable to set prices of a commodity 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 in relation to product demand in the market segment.


Strong competitive strategies from established market leaders can close the business niche of a new business venture. This is because 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 great 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, customer is the king .This is why the business 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 in order to incorporate emerging issues into their system and products.

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

Adoption of new security measures such as installation of 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 above aforementioned aspects that should be avoided in order to achieve financial success in the business venture.



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