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Failure & Loophole Analysis:

Failure & Loophole Analysis:

Failure & Loophole analysis involves investigating how something failed, why it failed, the financial loss occurred, and how to prevent it from happening again. It is a systematic and logical examination of the mechanisms of a project. Investigators also examine all relevant documentation. Sometimes the analysis also includes determining liability and loopholes existing within the business and providing solutions for this.


Failure & Loophole analysis involves investigating how something failed, why it failed, the financial loss occurred, and how to prevent it from happening again. It is a systematic and logical examination of the mechanisms of a project. Investigators also examine all relevant documentation. Sometimes the analysis also includes determining liability and loopholes existing within the business and providing solutions for this.

We have a team of experienced failure analysis engineers who completely investigate everything from the beginning towards the end, thus playing a lead role in the analysis of failures, whether a component or product fails in service or if a failure occurs in manufacturing or during production processing.

                                                                      Here are certain factors that lead to the failure of your business:

Insufficient Research: One of the immediate causes of the failure of an entrepreneurial venture is the lack of research. Many of the entrepreneurs are so overwhelmed with the exclusiveness of their idea that they just ignore the importance of research. Whether it is the research of the market; or an analysis of the demographics of their intended audience. You must have prior knowledge of the market before you plan on entering it. You must be familiar with the trends of the market, the demand of the customer and how your unique product or service is going to influence the behaviour of the present market and persuade them to be inclined towards your exclusive idea.

Lack of Capital: What most entrepreneurs fail to realize is that they have to be in business for the long run but they have the capital for short-run purposes only. They rely on the success of their venture and assume that the sales would generate revenue for the business in the long run. But this is not the case; sales usually come gradually and after a substantial period. So you need to have sufficient capital at hand to make the business running until the venture is established enough that it can generate sales and take care of itself.

An Understanding of Business: As many of the entrepreneurs manage their business themselves, so not having sufficient knowledge of the business processes is one the many reasons why an entrepreneurial venture fails. You must have a little know-how of how the business processes work, what laws and legislation can affect your project and what loopholes you need to cover to ensure the smooth flow of business processes. If an entrepreneur fails to grasp the fundamentals of a business, then the venture is doomed to fail.

The Right Team: Success of an entrepreneurial venture is not a sole effort rather teamwork. You may have a unique idea, you may also have some know-how of business essentials but if you don't have the right team to execute your idea then the result will be a breakdown. Most of the ventures fail solely due to the incompetent workforce. So to execute your idea successfully, you have to have the right people at the right place.

Marketing Strategy: The most common and the major reason for the failure of an entrepreneurial venture is the incompatible marketing strategy. Most of the entrepreneurs fail to devise a suitable marketing strategy that suits both the target market and the product. So before developing a marketing strategy you should have a clear picture of what you want to target and how do you want to go about it. Because no matter how great your product is but if it does not reach to the target market and does not convey its specifications properly it is bound to fail.

All in all, we can say that to be a successful entrepreneur you have to be agile and adaptive to the changes taking place. You must keenly observe the trends of the market and last but not least have the background research before stepping into the venture.

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