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Failure is simply an opportunity begin again but this time more intelligently….” – Henry Ford. I evoked this deep rooted message because after working for more than a decade as a business coach, consultant and a success catalyst for SME & NSME sectors’ entrepreneurs, I have seen many of them failing partially or completely. I always wondered that many people start their ventures at same time, with same knowledge and with same resources but some of them flourishes like anything and some of them vanishes in a very bad way; so what was the reason behind this? After the in depth study, detail research, field studies and intense brain storming has led to identify 15 reasons why any business fails. Following are the reasons to be understood, to be pondered about and thereby turn around the situation.

  1. Over trading
  2. Lack of planning
  3. Mistakes in accounting or ignorance about accounting concepts
  4. Unplanned and unnecessary expenses
  5. Unplanned stock / huge inventories
  6. Procrastination in collection of outstanding
  7. Increasing nonperforming assets  
  8. Excessive withdrawals from business
  9. Staff issues
  10. Starting business without any financial back up
  11. Lack of frequent internal audits
  12. Depending only on one client/customer/party
  13. Ignorance about statutory compliances
  14. Continuous absence of owner at work place
  15. Don’t prioritizing the work / projects / deadlines

Being an entrepreneur if you are facing challenges or struggling somewhere then focus on above mentioned 15 reasons – whether knowingly or unknowingly you are victim of either of above listed reasons. If yes, then start working on them strategically. If you want to know more about this or want to discuss on any of your challenges related to above listed reasons then you can post your questions in the comment below this article; we will get back to you with solutions.

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