Why 95% of businesses fail ?

according to the research data somewhere around 95% of businesses fail.

here are some major reasons why businesses fail

This is the article majorly focused to help entrepreneurs to avoid business failure, as per the business expert research we would like to deliver all the major points that impact your success & failure.

you need to consider the following step by step points that are responsible for the business failure.

Not a market fit product

sometimes business owners love the space and product but the market may have a different point of view for the same product. then this is the very major factor the product and services you are going to market is really based on customer needs. sometimes you choose the right problem to solve through your venture but the product and services you are offering are in the initial phase or not competent to resolve that problem.

market perception and consumer need is everything if you are able to solve problem through a product it increase the chances to your business success.

incorrect target audience

every segment has its own perception and buying behavior, which is really important for the businesses to identify their real customer who actually needs your product. it's like target monk for the beauty products but at the same time, you are targeting young students. of course, young students are a better choice. we recommend you, first of all, identify your consumer & then target it by the community.

Poor marketing strategy

Marketing is a very essential pillar for every organization, a wise writer said "poor product with good marketing can generate more revenue over the good product with poor marketing"

I personally recommend strategic marketing for the growth that attracts your target audience and improves the conversation ratio. for the effective marketing, you can use modern automation tools like Vanizya

Negative cash flow

Many businesses sometimes face more expenses over income than obviously the negative cash flow in the organization start generating a loss. to overcome the problem try to minimize expenses if the organization does not really require full-time resources try to outsource for the particular tasks also don't block your money in unnecessary inventory.

in short run to avoid the problem you can go with a venture capitalist fund by diluting some amount of equity.

Wrong hiring & training

at the time of hiring, you need to major 2 things in the candidate's skillset & passion about the role. if your team is aligned with the company vision it's good to sign for the organization's growth. sometimes wrong hiring makes in trouble for your company the people working for your company either build or break the organization. make sure your organization takes care of manpower and gives them a healthy work envionrnment. most importantly avoid overhiring .

your employee runs the organization it's a regular and good practice to educate, train & retain them.

Customer training & support

you build a very market fit problem-solving product but still, you faced problems in customer acquisition the only point is your customer is not familiar with how to use the product. sometimes users may not fully aware of your product and they misunderstood the product or service functionality than this is your responsibility to educate them and deliver a clear message about the product uses.

your efforts toward customer education help you to increase consumer recall value. I personally recommend you to add a few sections for customer literacy like the user manual, FAQ, and tutorial.

high Customer acquisition cost

new businesses in the market generally start low-cost or discount marketing strategy which is not good, the time you give discounts to build a price competition with other providers. you reduce your net profit and selling price which directly impact your company profits. sometimes it may be a good strategy but not always.

you can try to minimize customer acquisition & retentions cost though Vanizya automation.

Traditional process approach not using business automation

In the year you are using excel or any register to maintain your data it's time to upgrade the procedure in your company that reduces your operational cost and saves a lot of money and time. business automation tools help you to grow your business multiple time by automating your sales & marketing. the cost of the man-power can also be reduce through powerful tools like Vanizya automation

Poor management

as a leader, you are driving the organization your all decision making either positive or negative influence the company.

useful links

What is Marketing Automation | Business automation |


our aim is to help businesses & reduce the failure rate with the business knowledge & execution, we understand the problem faced by the business and how it can be overcome. we simplify the entire business process and sync all the necessary components in advanced business automation software. at vanizya automation, we started to build an affordable solution to empower young entrepreneurs to reach their maximum potential.

Vanizya automation believes that every small business should be able to access the power of automation we simplify the complex automation with No unnecessary features or complicated processes. we are 100% focused on building something for the entrepreneurs who need and love to use it.

Trusted by 50K+ businesses & organizations

vanizya automation helps a lot of organizations with their marketing workflow and business management.