People venture into businesses not only to make profits but also to satisfy customers and win their loyalty at any given time.
While this is the aim of investors, some businesses collapse midway or after many years of sustaining upwards trajectory.
Longtime business consultant and hotelierJospeh Koech explains why businesses collapse over time.
1 Competition – It is rare to have a unique business for a very long time, says koech with time other people will venture into the same trade leading to stiff competition. At this point, those who are not prepared to buy new ideas throw in the towel.
2 New arrivals – If you are in business dealings with shoes on Nakuru, for example, and then your competitors start import quality and affordable shoes, many customers will certainly leave your stall for new arrivals.
3 Relocation – Over time, people move from one place to another, like a person moving from Nairobi to Kisumu. If such a person is used to frequent a certain hotel, then the relocation means one of two customers is lost.
4 Dead customers – This is an unfortunate situation when a life is lost. According to the consultant, this easts away a small percentage of customers from any business.
5 Influence or peer pressure – This is an instance where one person decides to buy a certain type of car or shoes because someone else has influenced them.
