Checklist of What Causes Business Failure

  1. Lack of Business Knowledge

  2. Poor business management experience and skills.

  3. Poor cash flow due to bad debts and inefficient collections.

  4. Overtrading.

  5. Poor financial control.

  6. Lack of sales and revenue.

  7. Failure to plan.

  8. Lack of staff productivity

  9. Too much competition

  10. Lack of capital or inability to arrange funding.

  11. Incorrect or non-existent books and systems.

  12. Excessive funds taken for private use.

  13. Lost time in complying with regulations and red tape.

  14. Internal problems to do with shareholders, managers and staff.

  15. Other reasons such as poor pricing, inability to get good staff, lack of marketplace, failure to seek professional advice as required, poor location and failure to keep up with developments in technology.

Return to 'Checklist' menu


Back to Menu