Main Causes of Failure in Business

4 Main Causes of Failure in Business
Based on the study, 60% of all new businesses do not reach the age of 6 years (Business; Griffin & Ebert). Here are some things that affect.

• 1. Lack of managerial ability or experience.Most businesses started by people who do not have experience. Many people argue that management is "common", whereas if the entrepreneurs do not know how to make business decisions, most likely in the long term they will fail.

• 2. Negligent. After the opening, usually the enterprenuer back and not focus on their business. Starting a business requires a commitment of time and hard work in earnest.

• 3. Lack of control. Control systems help the businessmen to monitor costs, production levels, etc.. When the control system does not show the control at an early stage, then the entrepreneur will find it hard to face the next big problem.

• 4. Capital is not enough. A business must have enough capital to survive without income for 6 months. New business owners almost certainly will fail if they hope to pay all the bills in the second month by relying on the profit-making in the first month.

Key Success In Business