When last have you taken stock of your business? Many business owners are stuck in day-to-day activities, to such an extent that they neglect to keep track of their goals and objectives.
Having worked with numerous small to medium sized enterprises, reading up on research done by academics and participating in ongoing discussions with peers we’ve compiled a list of 10 generally accepted contributing causes of business failure to help you determine what you need to focus on to ensure that your business will be around in five years from now.
The 10 generally accepted contributing causes of business failure are:
Lack of general business knowledge and unwillingness to pay for professional help.
No or inadequate business plan.
Under funding, which stems from a lack of planning.
Poor cash flow management and in particular debtors and stock
Lack of operating goals and objectives even if high level plan are in place
Failure to measure performance. If though goals and objectives are in place, comparison to actual results tends to be overlooked.
Failure to fully understand the industry and in particular competition
Poor marketing and invariably lack of market research before commencing the business
Poor people management skills
Lack of planning and structure
If any of the above makes your feel anxious, then you probably need to set out time to investigate and evaluate how you can improve on them. Should you feel that you need help contact our team here.