How Do you - Identify Main Causes of Business Failure

Businesses caused by a number of factors but the 12 main reasons which can be termed business causes are detailed below.

These are:

1. Poor business management experience and skills.
2. Poor cash flow due to bad debts and inefficient collections.
3. Overtrading.
4. Poor financial control.
5. Lack of sales and revenue.
6. Failure to plan.
7. Lack of capital.
8. Incorrect or non-existent books and systems.
9. Excessive funds taken for private use.
10. Lost time in complying with regulations and red tape.
11. Internal problems to do with shareholders, managers and staff.
12. Other reasons such as poor pricing, lack of employee productivity, inability to get good staff, inability to arrange funding needed, lack of marketplace and competition, failure to seek professional advice as required, poor location and failure to keep up with developments in technology.

These are briefly covered below.

1. Small Business Management Experience and Skills
It is widely acknowledged that this is the main cause of failure in a business. Quite simply the person going into business does not po...