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Why do businesses fail? by Verity Anwar

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Inveralmond chs

on 19 September 2012

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Transcript of Why do businesses fail? by Verity Anwar

Why do Businesses fail? Businesses fail for a number of resons... Cash flow problems Even those that do can be caught out, they may have been too optimistic with their figures Many businesses do not plan ahead properly- they do not draw up a Cash Budget Or there is something quite unforeseen like a petrol blockage or foot-and-mouth which stops people moving about and affects trade Perhaps a big customer takes a long time to pay or even goes bust owing them money The result is that there is not enough cash coming in to pay the bills Competition is too fierce They have a better product They use destroyer pricing- making prices so low other businesses can't beat Business generally is bad The economy is in recession which means that
less is produced less is earned less is spent less is bought more people are unemployed and have no money to buy things
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