ethiozoo

Top 12 Reasons Why Businesses Fail

February 10, 2010 at 2:33 AM Leave a comment

• 82% Poor cash flow management skills/poor understanding of cash flow.
• 79% Starting out with too little money
• 78%  Lack of a well-developed business plan, including insufficient research on the business before starting it. 
• 77% Not pricing properly – failure to include all necessary items when setting prices.
• 73% Being overly optimistic about achievable sales, money required and about what needs to be done to be successful.
• 70% Not recognizing, or ignoring, what they don’t do well and not seeking help from those who do.
• 64% Minimizing the importance of promoting the business properly.
• 63% Insufficient relevant and applicable business experience.
• 58% Inability to delegate properly – micro-managing work given to others or over delegating and abdicating important management responsibilities.
•   56% Hiring the wrong people – clones of themselves and not people with complimentary skills, or hiring friends and relatives.
• 55% Not understanding who your competition is or ignoring competition.
• 47% Too much focus and reliance on one customer/client.   Bad Location.

Entry filed under: Business Opportunity. Tags: .