We have reviewed Reasons For Closing A Business on this page for your satisfaction. You can browse the page for benefits of closing a business. If you want to know effects of closing a business, then this post is most suited for you.
By the fifth year in business, about half of all small businesses fail, according to the U.S. Small Business Administration. Common reasons cited for business failure include poor location, lack of experience, poor management, insufficient capital, unexpected growth, personal use of funds, over investing in fixed assets and poor credit arrangements. Yet, not all businesses close due to business failure. Sometimes even a profitable business decides to close its doors.
benefits of closing a business
Reasons For Closing A Business
A poor or inexistent business plan is the reason for many business failures. An effective business plan defines the goals of the business owner and formulates a road map to reach those goals. The business plan should identify its market, sales projections, customer needs, special niches and price range. It contains a marketing strategy, budget, management plan and short range and long range goals. The business plan does not just focus on the proposed business, but on the business’ potential competition as well.
Lack of Capital
A business that runs out of working capital before bringing in sufficient funds to sustain its expenses is often a result of poor budgeting or unrealistic forecasts. When setting up the initial budget, the business owner might underestimate expenses, such as material costs, labor or utilities. The entrepreneur might assume the business will begin paying for itself long before it actually does, resulting in vanishing capital and mounting bills with no way to pay them. The University of Idaho’s “Business Management and Technology Curriculum Guide” lists the lack of capitalization as one of the top four reasons a business fails. The other three include a lack of business skills, failure to understand the market and lack of advertising or publicity.
An entrepreneur who is a gifted chef might fail as a restaurateur if he has no management skills. Poor management is a common cause for business failure. There is more to running a restaurant than being a great cook, just as there is more to running a successful photo studio than being a talented photographer. Managing the business involves organizational skills, coordinating staff, paying great attention to detail and dealing with mundane yet necessary paperwork.
Even with a stable infrastructure and capable employees, sustaining a business when its owner falls ill is not always possible. Businesses commonly close due to health reasons. Even a successful and thriving business might close its doors if the owner faces significant health issues or if the owner has reached an advanced age and no longer has the energy or motivation to continue.
The entrepreneur might have an excellent business plan, ample capital, great management skills and be in perfect health, yet an unforeseen, totally unexpected event might close his business. A tornado might drop down in his town, demolishing his business location. An inventor in another state might develop something new that makes the business’ service or product obsolete. His main supplier might unexpectedly go out of business, making it difficult to meet production. Sometimes, it is impossible to predict an unforeseen event capable of closing a business.
effects of closing a business
BEST SITES LIKE ALIEXPRESS FOR ONLINE SHOPPING
AliExpress is a massively popular Chinese online retail service owned by Alibaba Group. It was launched in 2010 and hasn’t stopped its journey to becoming the ‘biggest online marketplace of the world‘ ever-since. AliExpress stands toe-to-toe even with Amazon in terms of buyers worldwide. It offers wholesale goods at direct-to-consumer prices from Chinese sellers.
It also works as a great dropshipping model for a lot of e-commerce entrepreneurs. Along with a lot of good sides, AliExpress has some cons as well. The biggest problem is the shipping time of AliExpress orders, which is pretty long considering the goods come from China. Also, some orders can be very expensive after shipping charges and taxes.
So, it is a good thing to have some AliExpress alternatives whenever you don’t like its services. That’s why we are telling you about 21 best sites like AliExpress. Some of these websites offer cheaper prices and faster shipping on certain products. And, you can also use them to maintain a nice profit margin for your dropshipping business.
LightInTheBox is the perfect AliExpress alternative as it is also a Chinese e-Store. It sells hot and trending products across the globe. Their products range from phone and electronics to fashion, jewelry, shoes, bags, and many other items. You can find almost anything here at a very cheap price.
The delivery time of LightInTheBox is also similar to AliExpress as their warehouses are located only in China. But, you may get a faster shipping time due to having fewer orders to ship. You can pay for your orders with PayPal, Western Union, or your credit card.
Wish is a widely popular online marketplace where you can buy almost anything. From clothing to footwear, electronics, healthcare items, and many more things, you can get them all for an incredibly cheap price. They are also known to offer great deals and coupons to their new customers.
Their shipping time is also faster than AliExpress as their products come from sellers located in small countries. Wish also provides an advanced rating system that is very helpful for both the consumers as well as sellers. It helps promote good ones.
Overstock is a US-based online marketplace. It makes profit by selling wholesale products at a highly cheap price tag. A major portion of their stock is comprised of overstock from the major retailers or their seconds. You can find some really amusing deals here. The shipping time will also be lower as compared to the Chinese marketplaces. You can get your items within a week.
The product range of Overstock is incredible. You can find everything such as clothing, decor, kitchen appliances, and many more items. You can even find furniture and other big home items. So, you can use to fill your house with great stuff at a reduced price.
DealeXtreme, more popularly known as DX, is an amazing online marketplace. The website works in a very similar manner as ‘Wish’ and sells cheap products coming directly from sellers. It has partnered with many small businesses and sells its products to a wide base of audience.
The shipping time is a problem with DX also because their warehouses are located in China. Apart from this, you can get some really worthy deals on DX. You should always keep an eye on their clearance sales for the best prices.
Gearbest is the perfect AliExpress alternative if you are looking to shop for the latest gadgets or electronic devices. It works with over 5000 Chinese brands and top suppliers to deliver the best products. It has products from top Chinese companies such as Xiaomi, Huawei, Lenovo, and many others. But, it isn’t just an electronic store.
You can also find a massive range of other products as well. The prices available on GearBest are reduced, and you can even reduce them with the available coupons. They also have warehouses in multiple countries. So, you can get faster shipping from the local warehouse.
BangGood is another Chinese e-commerce platform that provides worldwide shipping of cheap goods. You can find almost anything on this website, from clothing to electronics, and even home items. The prices available are marked down from their original prices. You can also get amazing deals during special clearance sales.
BangGood provides a free $20 coupon to every new user. The shipping time for BangGood orders is faster than AliExpress for certain products. However, the regular shipping time is similar.
ChinaBrands is a widely popular Chinese e-Store where you can buy products at wholesale prices. You can find almost anything on this website at a highly affordable price. Their shipping prices are also low but you will get a long shipping time. It is the perfect website for buyers who want the lowest prices but can wait for their orders for at least a month.
Most of the ChinaBrands sellers run their factories from China, and their warehouses are located there only. This is the reason for the considerably long shipping time.
Bonanza is a unique American online marketplace where you can find a great range of products. They have over 20 million items from more than 50,000 sellers. It is a growing e-commerce store where even you can sell your items. It is a preferred platform by more than 20,000 entrepreneurial sellers. You can find some really amazing handcrafted items and collectibles here.
For people looking to shop regular items, this store may disappoint you a little. The prices of some items may be a little higher than some Chinese stores. But, the quality provided will be worth it.
21 ALIEXPRESS ALTERNATIVE STORES
Here are 21 AliExpress Alternatives that you can use to shop online.
- DealXtreme (DX)
- American Greenwood
AliExpress is amazing but it is always good to have options when you are shopping. So, these are the 21 best sites like AliExpress. If you ever feel like you should look somewhere else, these are some stores that you should visit. You can also use these for your dropshipping business if you are an aspiring entrepreneur. Make sure you have a solid plan before beginning.