There are unpredictable reasons for the business success and survival i.e. both external and internal factors. A large number of business failure and success depends on the problems defined externally.
Most small business owners have limited experience in management while tend to have technical or professional skills. This can result in subsequent reversal of the fortune in the widespread business failure. Everyone including suppliers, investors, employees and customers lose when a business owner fails.
According to the recent stats and figures:
➢ 90% of the business failure results due to cash flow problems
➢ 80% of the business owners serve 2 years in business, 50% of all businesses form it 5 years, 30% sustains 10 years
➢ 50% of business owners strike cyber-attacks, only 20% of small businesses rates their ability to mitigate vulnerabilities, cyber risks and highly effective attacks
Internal causes of Business failure –
• Lack of management
• The deficit in invoicing
• Incompetent sources of finance
• Poor debts
External causes of business failure –
• Strict governmental measures may affect specific sectors of business activity and impose a stringent burden on SMEs.
• The bankruptcy of Main Customer or Supplier
STEPS THAT WILL STOP BUSINESSES FROM FAILING –
✓ Passion in business is important
✓ Look out for more questions
✓ Running a Beta Test
✓ No Fool-proof
✓ Manage cash flow
✓ Plan for the future
Plan and forecast your business with proper account receivables, reports and keep track of inventory turnover and operating margins.
Handle the business metrics like a pro by choosing an Online Invoicing Software like Invoicera.
Invoicera offers the following features to all business industries –
▪ Online Invoicing
▪ Online Payments
▪ Staff Management
▪ Time Tracking
▪ Financial Forecasting
▪ Expense Management
▪ Credit Note Management
▪ Subscription Billing
Try Invoicera for Free – https://bit.ly/3jEd3pD
Read More: 6 Amazing Ways to Avoid Business Failure in Any Crisis
