Why do most businesses fail?

[Delta]

I just read a book by Texas billionaire Tilman Fertitta called "Shut Up & Listen!" and he said the number one reason why most businesses fail is because they lack enough working capital.

Do you agree with this?

Also, why do some businessmen become billionaires while many others fail miserably?

Does luck play a role?

[snlᴉʇnɐNɔᴉɯsoƆ]

If you have enough money to throw at problems you can make them go away and then if you get big enough you will get bailed out instead of collapsing when you deserve to do so.

[Violeta]

Sometimes they just fail because a big company lowers prices until the small companies are driven to bankrupcy. Amazon loves to steal ideas and price people out.

[Ⓥenom Ⓢnake 🐍]

Hard work, creativity, and fill a niche. But having a stable cash supply is important too. If you don't have enough at the start, or you hit a rough patch like what a lot of businesses are currently experiencing, and you will fold.

[snlᴉʇnɐNɔᴉɯsoƆ]

Neko Carl の投稿を引用：

Delta (EB) の投稿を引用：

Also, why do some businessmen become billionaires while many others fail miserably?

They were already millionaires.

Tilman Fertitta probably falls into this category.

[Ⓥenom Ⓢnake 🐍]

"To get me started, my father gave me a small loan of 1mill dollars"
~Oompa Loompa

[Irene ❤]

It's a big variety. For investment companies they need capital. Else they can't invest to earn interest, and fail. For consume products they need to stay in trend and reinvent. Look at how crystal pepsi / 7up stick guy died off over time.

[Chunk Norris ☯]

A large reason for many business failing is government restrictions/regulation or high taxes.

A case I think about sometimes is Eric Garner. He was a black man killed by the police for selling cigarettes.Now selling cigarettes unlicensed was a felony but why? Does it really matter that you buy your cigarettes from the local gas station or some guy on a street corner. Not really.

His business was shut down by over-regulation. But what if he wanted to expand his business. What if he had a friend who was willing to work for commission. For every 100 cigarettes sold he gets 5 dollars. Now if Eric Garner and his friend agreed upon that deal before hand who is the government to step in and say sorry but you have to pay his friend 15 dollar minimum wage an hour, even if Eric Garner couldn't afford it.

Now a mega-corporation like Walmart or Amazon tends to make massive political donations to groups that push over regulation and guess what? They can easily absorb something like 15 dollar minimum wage hike, especially when you consider that if it kills a small business then all that small businesses business has to go elsewhere, possibly Walmart or Amazon.

Businesses fail for all sorts of reasons, and luck plays a role. Marketing plays a huge role.

[Fajita Jim]

The Father ☯ の投稿を引用：

A case I think about sometimes is Eric Garner. He was a black man killed by the police for selling cigarettes.Now selling cigarettes unlicensed was a felony but why? Does it really matter that you buy your cigarettes from the local gas station or some guy on a street corner. Not really.

I'm guessing you're too young the remember the big tobacco settlement back in the 90's. Those taxes go straight to recovering government expenses due to treating smokers either through medicare or through grants to hospitals treating the same who are uninsured.

Regulations aren't typically dreamed up to roadblock businesses. But I suppose it would be too much to ask that you at least investigate a subject before beating your chest about it.

[Dracoco OwO]

Because competition exist and is often better than you.

[Chunk Norris ☯]

Fajita Jim の投稿を引用：

The Father ☯ の投稿を引用：

A case I think about sometimes is Eric Garner. He was a black man killed by the police for selling cigarettes.Now selling cigarettes unlicensed was a felony but why? Does it really matter that you buy your cigarettes from the local gas station or some guy on a street corner. Not really.

I'm guessing you're too young the remember the big tobacco settlement back in the 90's. Those taxes go straight to recovering government expenses due to treating smokers either through medicare or through grants to hospitals treating the same who are uninsured.

Regulations aren't typically dreamed up to roadblock businesses. But I suppose it would be too much to ask that you at least investigate a subject before beating your chest about it.

Lol, says the guy who doesn't even realize he's just proving my point. Did you ever stop to realize that the government requiring a business to pay millions in restitution was a road block for their business?

Perhaps they should go after the various junk food companies for making people fat and thus costing the government money. Actually screw that noise, lets go even stupider lets go after the fork companies for making people fat.

[Ghost Robertson]

Well if a business wants to start off well they need to make themselves unique to stand out from the other businesses that offer similar products/deals.

I read in the paper that one business consultant usually asks people "what is a reason why i should shop at your store over some one else's?"

Some people can't give a good answer, The ones that do seem to succeed.

[$2 Hero]

Most businesses are worthless. Seriously how many fkin coffee shops and taco stands do we need

[Irene ❤]

The real challenge to run a business is making it sustainable. There might be luck and opportunities, but there will be a test of time. Hence luck is not everything.

[Radene]

Uh, because it's in the nature of existance for it to eventually end.

On a more mundane note, a combination of luck and decision making. Some people just don't get that nobody cares about "this great idea" they just had. And some are too far ahead of their time. And then some simply can't keep up their passion once it becomes a job.

[Candyy]

Can be due to lots of reasons