Friday 8 March 2019

4 Common Reasons Why Business Fall To Bankruptcy

By Angela Patterson


You wanted to buy a phone but you suddenly become torn between buying a Motorola or perhaps go with Apple brand. But eventually you picked Apple because everyone recommends that to you. If you are one of the makers, it surely be hard for you to compete with other brands. But competition is part of challenges that will make you grow. But whenever you fail those challenges, it might lead you to a troublesome state and need to call a bankruptcy attorney Oakland to help your situation.

Every day lots of small businesses started and every day as well, many have failed after everything they invested. According to statistics, forty nine percent of those companies failed after five years and about thirty percent of businesses have not even reached two years. You may wonder why it all happened to them.

Furthermore, beginners might be intimidated by that statistics and lost their confidence. But take this in your mind that this path is never easy. It contains many complex challenges and it is up to you on how you will overcome it. Sadly, some businessmen failed to find the right direction. They missed some elements and that resulted them to face their downfall.

In this field, the needs of customers must be identified so you could create your ideas. But sometimes there are things which would lead you to face failure in your chosen career. And these things are listed below.

No financial management. Most had failed because of this reason. They have no proper financial management which is why it leads them to bankruptcy. Most would not like to hire an accountant and would just do their job by their own. But that could be their disadvantage since they might make some mistakes in tracking. Furthermore, it would lead them to unhealthy cash flow, resulting their businesses to go down.

Planning and research is poor. Remember that those companies which are at the top right now had made tremendous amount of time to make research. Therefore, businessmen should also do a heavy research and also planning before making some actions. But they failed on that method. Because of that, they had no idea on how to get customers and beat other competitors.

Poor skills in leadership. A leader must equipped good decision making skills and can work under great pressure. A leader must also know how to inspire their employees and guide them to right way. But some does not have those qualities and because of that, it resulted to their downfall.

Legal Problems. When your research and planning is not enough, you may end up violating some government laws. Some owners have done that and faces the risks on different angles. Even some big companies went down because of legal issues like money laundering. Unethical practice will follow some legal issues.

One small part could affect the whole part. This certainly is how business works. As you see, it does contain difficult challenges. But when you survive those challenges, it will give you experience and make you knowledgeable and capable in the end.




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