The 5 wrong foundations that will make a company fail

Success is solid if it’s duration is a bit longer. When we want to build success, the foundation of that success is critical for achieving longevity. Many successful companies crumble suddenly and people wonder how that is possible in this day and age. Building a successful company takes time and patience, however when it is built on the wrong foundation its fall is normally spectacular. A house is only as strong as its foundation and in a similar aspect, a business is only as strong as the foundation that it is built upon.

1. Success built on quick sand

Quick sand foundation is success built on ideas which are past their durability. These are ideas which no longer apply in the modern times. So one could start a small business based on renting movies on old tapes yet people now watch Netflix or prefer renting from cable channels. Such a success will quickly begin to sink, it starts off with an excitement but after some time, which is a very short time it sinks faster than it was developed. A small business like that is doomed from the moment it is set up in the same way that when you step on quick sand you begin to sink.

2. Success built on questionable relationships

These are successes that are built on partnerships of convenience and not mutual agreement. They are more of a compromise more than anything. The reason for divorce and company shareholder wrangles is because of wrong motives for relationships. It could be different views on how to succeed or simply wrong visions. The result is always the same, the success eventually goes down not because the success was wrong but because the relationship brought it down. There are many companies which fail not because of the success of the small business but simply because of the relationships between shareholders and partners, or even management.

3. Success built on illegal deals

Drug money can start a small business and so can illegal money or stolen money but eventually the small business will fall. There are many stories of business people who start companies through illegal means which eventually lead to the companies falling. The reason why small business then fall is because the foundation requires the same principle to be used to grow the company. So if one stole in order to start their company they will also steal to grow their company. A wrong beginning unless repented can grow the wrong establishment.

Also write How to start business that works in 3 steps

4. Success built on ignorant hostile takeovers

It is one thing to takeover another company or success but it is another thing to do it with ignorance. An ignorant hostile takeover is when one takes over another company but the person taking over has no idea of the culture, business mission and values of that company that made it successful. So the new owner introduces a lot of changes and gets shocked as to why the company fails to perform with all their new capital. This also applies to companies that start with lots of capital but lack the know how of business success. Ownership does not mean knowledge of what one owns.

5. Success built on greed

Business is about providing solutions first before anything else. If the vision is all about making money only, then the company will compromise on compliance issues and will fail in the future. The company will end up taking short cuts,  in the future it will be stuck with huge debts and an inability to innovative. Money is important but so is the business ethics of the company. Success built on greed eats its own capital and finishes its own working capital. Greed in business destroys the future due to lack of patience to build the present. A greedy business person is like a farmer who eats the seed they are supposed to plant.

Also read 7 Things you need to do to build a business empire