The 8 Traps Causing Failure And The One Attribute Which Ensures Business Survival
An analysis of the reasons for business failure suggests that over 60% of all business failure is due to poor management practices.
Learning Management Skills: There are two very good ways for small business owners to learn management skills.
One is to find out what the “high-fliers” in your industry do, and do the same! Perhaps then you will become a “high-flier” too!
Another is to study the mistakes of others.
The following are the 8 traps, which cause business failures:
- Trap 1 – Discounting the need for experience
- Trap 2 – Sloppy Bookkeeping
- Trap 3 – Spending more than you receive
Often a shortage of cash is a symptom of other problems with the business, so your first move should be to your accountant.
you are wasting time and money.
Ensure training provides return on investment
- Trap 4 – Failing to Plan
- Trap 5 – ‘Dilly Dallying’
A trap for the unwary is to allow the business to run the proprietor instead of the proprietor running the business. Sometimes this a symptom of poor planning, but often owners fritter away their time on trivial matters doing insignificant tasks which staff should do while vital jobs are left undone.
- Trap 6 – Poor Marketing
- Trap 7 – Poor Employee Management
- Trap 8 – Assuming the proper role as an owner