Causes of Business failure

Entrepreneurship-and-Communication-Skills-notes
  1. Inappropriate business management and technical skills (adaptable to changing customer needs).
  2. Inadequate financing
  • Start-up
  • Operating
  • Expansion capital
  • Personal expenses                                                                                3.Lack of proper record keeping
  • Use of records for sound decision making
  • Little understanding of accounting records                      4.Improper costing and pricing
  • Retail
  • Manufacturing
  • Service business
  • Direct costs
  • Indirect cost
  1. Incompetent employees
  • Lack of motivation
  • Poor pay
  • Unskillful
  • Job not marching skill
  • Employment of relatives
  • Inaccurate recruitment procedures
  • Training and development
  • Clear job description
  1. Neglecting customers
  • Customer centered organization
  • Exceed customer expectations
  • Survey customer satisfaction
  • Provide avenue for resolving customer issues
  • Prompt service and resolution to customer
  • Customer friendly terms
  • Ignoring competition
  • Know your competitors
  • Know your position in regard to your competitor
  • Know the competitors strategies
  • Note direct, indirect and future competitors
  • Coping strategies
  • Neglecting suppliers
  • Make prompt payments
  • Develop good relationship with suppliers
  • Adequate time to supply



Leave a Reply

Your email address will not be published. Required fields are marked *