Business Failure
- Created by: Cadenza146
- Created on: 24-05-21 14:01
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- Business Failure
- Internal Factors
- Financial
- Liquidity
- poor financial management, lack of forward planning
- may lead to cash flow problems
- Poor Accounting
- poor procedure can mean cash flow is not being closely monitored
- Liquidity
- Non-Financial
- Management error
- clear and skilled leadership is crucial, poor management can be fatal
- Wrong strategy
- business loses touch with the market and its customers
- Communication
- lack of it means business can't co-ordinate
- Failed Expansion
- many businesses expand and fail because they don't anticipate all the problems
- Poor Quality
- in the digital economy, poor quality or service can be quickly exposed
- Lack of investment
- Poor marketing
- Management error
- Financial
- External Factors
- Financial
- Exchange rate
- Interest rates
- Lack of finance
- Recession
- Financial crisis
- Non-Financial
- Structural change
- Competition
- Natural phenomena
- Government regulations
- Supplier problems
- Financial
- highest rate of business failure is amongst new businesses
- difficult to test a business model without trading
- easy to be over-optimistic in the business plan
- competitor response is often aggressive
- management may lack experience
- Internal Factors
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