The failure of enterprises damages reputations and occupations, damages companies, loss of funds, and when we hear about the failure of enterprises, we are often surprised by their size and scope, and this happens in the largest institutions, and in this regard we may wonder, with all this mental strength and money behind the project, how can it not reach maturity?, This is what we will recognize in this article, where we will look at reasons why projects, especially small ones, fail.
When is the project considered a failure?
The project is considered a failure when it does not deliver what is required of it either on time or within the agreed budget (or worse, both), a project that seems successful at first can also be considered a failure after occurrence, if it fails to meet expected return on investment targets, yet the idea of failure is subjective, and often, projects perform "Failed" to important results, even if you miss the deadline or don't get a certain delivery, though failure leaves a bitter taste, it often goes hand in hand with setting ambitious goals, with which to remedy this failure.
10 Reasons Why Small Enterprises Fail
There are many reasons why small enterprises fail, and it can be difficult to identify risk areas in your project, but here are 10 reasons and the most common ones:
1. Poor planning
The lack of planning leads to the failure of small projects, where the existence of a successful project depends on the correct specification in detail of the scope, time frame and role of each member, In this way, you will have a specific path to follow, and planning also extends to managing your resources to ensure that everything is in place to meet the requirements of the project and that people are not overwhelmed or exploited inadequately The same applies to financial planning and forecasting, to ensure that your budget is not exceeded.
2. Mystery and bad management
Ambiguity and lack of clarity about the benefits of work result from poor visibility around small enterprises, and failure to document "Cause" of the project to disrupt its objectives with the objectives of the business strategy and the strategic vision of the work in general and weak management can push projects directly into the abyss, When talking about management, not managing risk can also cause a whole range of problems that may lead to project failure, Risk management is the second most important process for the project's success, with stakeholders involved.
3. Culture of unsupported project management
We see many organizations that simply don't "get" project management, resulting in a basic top-down misunderstanding of what project management is and the value it brings, which can lead to inexperienced and/or untrained individuals running projects with little management support and missed opportunities to develop team skills to achieve better project results.
4. Indefinite and limited resources
Planning for small projects should not be limited to agendas, meetings and responsibilities and must include human, intellectual, financial or structural resources, If they are not constantly set, the deadlines cannot be met. Which could jeopardize the outcome of the project, too, when you want to do something quick. On a limited budget, a small team, it could really lead to your project failing, You should be realistic when it comes to your teams' abilities, deadlines and available resources - only then can you get the results you want.
5. Unclear objectives
Many small enterprises failed because of the very simple mistake of spending a lot of time on "Big picture" and neglect the practical steps required to access this image, which is required to avoid this failure that the objectives of small projects are clearly defined, and over time you will know whether you are doing the right thing or not, remember that choosing measurable goals helps you better visualize your progress and helps you know how close you are to achieving your results.
6. The scope of the project is poorly defined
The scope of the project defines everything you will do (and will not do), the scale creep in small project management indicates continuous and uncontrolled changes in the scope of the project, In general, the scope of an unspecified project results in a creeping definition of scope, Where the former is vaguely defined, documented or controlled And so the scope of the project is important because it helps you plan projects successfully, Including expected costs and schedules, it can also help you manage customer expectations.
7. Inaccurate cost and time estimates
Estimates of cost and inaccurate time are often vague guesses for team members who calculate the expected duration of tasks and the cost of small projects based on the average duration of time and cost taken for previous projects, and although the method of calculating the estimated duration of the task and cost may be accurate, it may also lead to completely inaccurate estimates.
This can cause all sorts of problems for staff who have been assigned tasks and are required to complete them in accordance with estimated times, when the tasks are not completed in line with the estimated time, staff have to face senior management's ire because there is no obvious mistake on their part.
8. Lack of control over details
Monitoring is necessary for successful projects, even knowing the details of many small projects at once can be very difficult, and as a result, it is important to know how your project is going, whether it is on time and whether the budget is under control, and in this way, if there are any differences from the initial plan, you can still correct it.
9. Lack of transparency
It is essential that everyone involved in small projects has a full vision of the project so that it does not fail - Not only the project manager, but other team members as well, this includes clear communication, good document management, transparency about the status of tasks, all of which can be achieved through fully digital central files, so as to avoid for example the accumulation of email chains in inboxes, the files are lost, the newer version becomes difficult to know, and information silos are a big problem.
10. Lack and weakness of communication
Communication is key to good project management, without appropriate tools and processes to allow interaction between team members and project manager from the outset, effective communication can rarely be achieved, and poor communication may arise from several different places, and may occur when it is unclear who the contacts are for each stage of your project, especially if your project involves several teams.
Conclusion:
In conclusion, the use of digital tools is one of the emerging trends in the business market to avoid the failure of small enterprises and even whatever their size. These tools provide solutions to many upcoming challenges, such as improving project results, identifying potential risks early on, reducing project costs, and ensuring that projects are completed on time and within budget.
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reference:
1. << Mark Cuban: These are the four main reasons why most small businesses fail >>, inc.
2. << Why small businesses fail >>, philstar.
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