The Top Reasons for Business Failure

By joanne | 18th July | Marketing Skills

Most people’s biggest fear is failure and I hope the following article will help you avoid it and instead assist in your successful business growth.

According to research, the 12 top reasons for business failure in 2009 were:

  1. Failure to focus on a specific market because of poor research
  2. Failure to control cash (by carrying too much stock, paying suppliers too quickly or allowing customers too long to pay)
  3. Failure to ruthlessly control costs
  4. Not adapting your product to meet clients needs
  5. Failing to carry out decent market research
  6. Not building a team that has the skills to finance, produce, sell and market
  7. Failing to pay taxes
  8. Failure to grow – businesses that attempted stability or didn’t try to grow didn’t survive
  9. Failing to gain new markets
  10. Under-capitalisation
  11. Cashflow problems (growing too quickly)
  12. Non-payment by customers

The great news is that most of these things are in your direct control – master these twelve elements and you are on your way to success.

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