TWO MAJOR REASONS WHY BUSINESSES FAIL

I have noted that starting a business is one thing and sustaining it is yet another. The grave yard is full of failed entrepreneurs, who didn’t make it for many diverse reasons
I am convinced that despite the many reasons for business failures, TWO stand out for me and they are direct opposite. Major Reasons Why Business

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I have noted that starting a business is one thing and sustaining it is yet another. The grave yard is full of failed entrepreneurs, who didn’t make it for many diverse reasons.

I am convinced that despite the many reasons for business failures, TWO stand out for me and they are direct opposite. Major Reasons Why Business.

#1. Business growing too fast

I remember in 2012, ZAMTEL had introduced a great package that allowed one to have 90minutes voice calls from 6am to 6pm and unlimited talking from 8pm to 5am the following day for K1.5 only. I was so excited to join the massive exodus towards CellZ.

Fortunately for the company, there was massive growth in subscribers in a short period like never experienced in Zambia before, Unfortunately they could not handle the sudden growth. I recall making an appointment for a call with a potential soulmate at 20hours.

I tried calling her from 20 to 22:10hours the network kept giving a beep for network failure. Finally at 22:10 I went through but the line was not clear -she says hello, I overhear another conversation between Bana Mary and another lady who was using Kaonde……. total confusion on the network. After cutting the call, the network was busy until after 24hours, unfortunately she didn’t pick my call perhaps she thought I was a liar. I blame ZAMTEL for being unmarried today :).

Zamtel Failed to Handle Clients because the Grew too Fast

My point is their business grew so fast and they couldn’t handle, as a result me and other subscribers left that network for good out of frustration. I have witnessed businesses that perform well as they start but begin being inefficient as they grow fast, losing loyal customers in the process because they fail to handle growth.

Another business in town delayed delivering our corporate shirts by 15days siting unprecedented growth in orders…… imagine the frustration. Would I go back? Maybe not.

#2. Business growing too slow

The second major reason is growing too slow. Every business has a threat of new entrants, either big or small, so if you are too slow in growing you will have new entrants knock you out. Have you ever noticed that you could have a small Kiosk (Katember) in your street for years without significant growth in size and product selection, then have a new Kiosk with a wider selection bit the earlier one within a month of existence. This applies in companies….. as such there is serious need to strike a balance between the two extremes and we will discuss in later articles, I guess this is too long.Improve Zambia as you improve yourself.

#TheRadicalEntrepreneur

#TheFutureIsBright

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