Why do so many companies fail?

Here are some of the biggest reasons:

1. Poor Cash Management - Management needs to be 'cash aware' -it's all too easy to overspend and leave the business struggling to pay its creditors

2. Poor risk analysis - even the best run business can find itself in trouble if exposed to risk. There are many types of risk including: legal, financial, supplier, poor training etc.

3. Excessive borrowing - ensure the business can meet its monthly borrowing easily - increased borrowing could leave a business short during any 'change'

4. Not understanding where you fit in your niche - in long established markets there are only 2 players the leader and the opposition - be sure your business has a place in your niche

5. No updated plan - business plan will change as businesses carve their own niche. Many changes will be market lead - it's important to amend your plan to make room for necessary change

6. Mismanaging 'change' - staff & management need to be informed & educated on any business change - this needs to be a do or die policy as non compliance can & will prove costly

7. Underestimating the time required for 'change' - it could take a few years to turn a business around - often this is much longer than expected - this error could leave a business cash short during recovery.

8. Bad management - it's vital that employees do the job they are paid for - if there is a way to pass the buck or minimize effort people will find it at your expense.

9. Bad team management - everybody needs to know whose team they are in & their part in the big company picture - not just their roles in departments.

10. Poor Training - for both leaders & teams will lead to poor output - it's necessary to train both staff & management on a regular basis.