A good list posted by A.J. on the Value Management Partners site. Here’s a link to the entry. This is another list to re-check about every 30 seconds or so if you’re running a business. These issues can sneak up on you, and are lots easier to deal with when the problems are just starting.
Read on for AJs list…
10 Reasons Businesses Fail
Not controlling costs.
As soon as a business gets a little successful with a cash flow, they start spending money…frivilously: fancier cards, websites, and other marketing collateral. Add in fancier technology, extra people and sitting on their laurels, suddenly the positive goes negative. Along with costs…
Disregarding or misinterpreting financial records.
This works with costs in that if you can’t read your P&L how would you know if you have any money? On the other hand…
Inadequate accounting records.
You may know how to interpret your P&L and balance sheet, but you’re not getting the whole or correct picture.
Inviting fraud through poor internal control.
If you can’t read your records or are not getting the whole picture, you’ll never know what an accountant, bookkeeper or other employee may be doing behind your back.
Failing to aggressively sell.
Nothing happens until a sale is made.
Insufficient working capital.
No sales, too many costs, that counterclockwise circular motion begins.
Not carrying adequate and appropriate insurance.
Car accident, trip and fall, a minor mistake, they can spell doom when un- or under- insured.
Failing to adequately train and develop employees.
You have to show them what you want done! They can’t read your mind.
Improper strategic planning.
If your having any of the previous problems then you haven’t thought out a plan.
Not seeking advice or professional help when necessary.
You’re good at what you do. Don’t think you can do it all. Sometimes stepping back with a fresh pair of eyes can stop the downturn.