Reasons Why Small Entrepreneurs Are Closing Their Businesses in Loss
1. Poor Online Presence
- Problem: Many still rely only on Instagram, Facebook, or word-of-mouth.
- Result: They don’t reach new customers or scale up.
- Example: Without a proper website or SEO, local products don’t go beyond their neighborhood.
2. No Financial Planning
- Problem: Mixing personal and business expenses, no tracking of profit/loss.
- Result: Even with sales, they don’t know if they’re earning or losing money.
3. Dependence on Manual Work
- Problem: Doing everything manually – billing, stock, customer follow-ups.
- Result: Wasted time and errors affect growth and professionalism.
4. Weak Branding & Packaging
- Problem: Plain packaging and unclear product value.
- Result: Customers don’t remember the brand or feel trust.
5. No Marketing Strategy
- Problem: They post randomly, no ads, no content plan.
- Result: Sales happen only by luck, not consistently.
6. Not Adapting to Change
- Problem: Using old methods, not learning new trends (AI, automation, WhatsApp selling).
- Result: Get left behind while competitors grow.
7. Payment and Delivery Issues
- Problem: No UPI/online gateway, COD troubles, late delivery.
- Result: Customers drop off, poor reviews affect future orders.
8. Overpriced or Underpriced Products
- Problem: Wrong pricing based on emotion, not market value or cost.
- Result: Loss due to low margins or no sales due to high price.
Difference Between a Successful and Failed Small Business
| Factors | Successful Business | Failed Business |
| Online Presence | Has a website, WhatsApp catalog, SEO | Only on Instagram/WhatsApp |
| Branding | Good logo, packaging, storytelling | Basic packaging, no clear brand name |
| Marketing | Runs promotions, engages on social media, ads | Irregular posts, no strategy |
| Customer Experience | Fast replies, tracking, good packaging | Late replies, no tracking, basic delivery |
| Financial Management | Tracks expenses, profit margins | No clarity on pricing or income |
| Learning & Upgrading | Tries new platforms (Orka Stores, Shopify, etc.) | Sticks to old method (only DMs, no updates) |
| Automation & Tools | Uses chatbots, stock manager, invoicing tools | Everything done manually |
| Payment System | UPI, Razorpay, COD, wallet integration | Manual bank transfer only |
🔁 Conclusion
Small businesses today have potential, but to survive:
- You must look beyond just selling — focus on systems, branding, and customer satisfaction.
- Use tools like Orka Stores to get proper payment gateways, online store setup, shipping support, and more — starting at just ₹995/month.