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NSP Strategist

   
Why Businesses Fail

the many reasons businesses fail

  • Getting wedded to a single idea and sticking with it too long.
  • Believing your own b.s.
  • Ignoring your cash position.
  • Letting Unproductive Employees Linger
  • Selling too hard
  • Not setting up support structures.
  • Inadequate financial records.
  • Disregard for or misinterpretation financial records.
  • Failure to control costs.
  • Lack of internal control.
  • Poor sales and customer relations.
  • Insufficient working capital.
  • Lack of adequate and appropriate insurance.
  • Failure to adequately train and develop employee relations.
  • Improper strategic planning.
  • Track key business matrixes.
  • Over-expansion.
  • Poor Capital Structure.
  • Failure to Control the Controllable Costs.
  • Failure to Prepare for Volatility of Uncontrollable Costs.
  • Add New Products or Divisions that Drag Down the Profitable Ones
  • Poor Internal Controls and Execution
  • Poorly Designed Business Model
  • Reliance on Critical Financing that Dries Up
  • Failure to Adapt to a Changing Market
  • Management in Complete Denial.
  • You start your business for the wrong reasons.
  • Poor Management
  • Insufficient Capital
  • Location, Location, Location
  • Lack of Planning
  • Overexpansion
  • No Website (or a poor one)
  • Your business doesn't make profits.
  • You haven't saved enough money.
  • You haven't defined your mrket and you don't understand your customer's buying habits.
  • You think you can do it all on your own.
  • Your business has grown too fast.
  • You depend on one customer.
  • You haven't priced your product or service properly.
  • You don't manage cash flow well.
  • You don't react to competition, changes in technology, or changes in the market.




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