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Reasons Why Small Entrepreneurs Are Shutting down Their Businesses in Loss | Orka stores
Reasons Why Small Entrepreneurs Are Shutting down Their Businesses in Loss | Orka stores

Reasons Why Small Entrepreneurs Are Closing Their Businesses in Loss


1. Poor Online Presence

  1. Problem: Many still rely only on Instagram, Facebook, or word-of-mouth.
  2. Result: They don’t reach new customers or scale up.
  3. Example: Without a proper website or SEO, local products don’t go beyond their neighborhood.


2. No Financial Planning

  1. Problem: Mixing personal and business expenses, no tracking of profit/loss.
  2. Result: Even with sales, they don’t know if they’re earning or losing money.


3. Dependence on Manual Work

  1. Problem: Doing everything manually – billing, stock, customer follow-ups.
  2. Result: Wasted time and errors affect growth and professionalism.


4. Weak Branding & Packaging

  1. Problem: Plain packaging and unclear product value.
  2. Result: Customers don’t remember the brand or feel trust.


5. No Marketing Strategy

  1. Problem: They post randomly, no ads, no content plan.
  2. Result: Sales happen only by luck, not consistently.


6. Not Adapting to Change

  1. Problem: Using old methods, not learning new trends (AI, automation, WhatsApp selling).
  2. Result: Get left behind while competitors grow.


7. Payment and Delivery Issues

  1. Problem: No UPI/online gateway, COD troubles, late delivery.
  2. Result: Customers drop off, poor reviews affect future orders.


8. Overpriced or Underpriced Products

  1. Problem: Wrong pricing based on emotion, not market value or cost.
  2. Result: Loss due to low margins or no sales due to high price.


Difference Between a Successful and Failed Small Business


FactorsSuccessful BusinessFailed Business
Online PresenceHas a website, WhatsApp catalog, SEOOnly on Instagram/WhatsApp
BrandingGood logo, packaging, storytellingBasic packaging, no clear brand name
MarketingRuns promotions, engages on social media, adsIrregular posts, no strategy
Customer ExperienceFast replies, tracking, good packagingLate replies, no tracking, basic delivery
Financial ManagementTracks expenses, profit marginsNo clarity on pricing or income
Learning & UpgradingTries new platforms (Orka Stores, Shopify, etc.)Sticks to old method (only DMs, no updates)
Automation & ToolsUses chatbots, stock manager, invoicing toolsEverything done manually
Payment SystemUPI, Razorpay, COD, wallet integrationManual bank transfer only



🔁 Conclusion

Small businesses today have potential, but to survive:

  1. You must look beyond just selling — focus on systems, branding, and customer satisfaction.
  2. Use tools like Orka Stores to get proper payment gateways, online store setup, shipping support, and more — starting at just ₹995/month.


Yamuna Devi,June 18, 2025