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Why Businesses Fail Toni Ronaldson

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Inveralmond chs

on 19 September 2012

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Transcript of Why Businesses Fail Toni Ronaldson

Why do businesses fail? Businesses fail for a number of reasons... Cash Flow Problems Competition is too fierce Business generally is bad The business has not kept up-to-date Poor management Cash flow causes most problems :( Many businesses don't plan ahead properly - they don't draw up a Cash Budget Even those that do can be caught out :/ They may have been too optimistic with their figures Perhaps a big customer takes a long time to pay or even goes but owing them money Or there is something quite unforeseen like a petrol blockage or foot-and-mouth which stops people moving about and affects trade The result is that there is not enough cash coming in to pay the bills The bank may allow an overdraft for a limited time but if things don't improve the business will go down the toilet! xP
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