Most business people do not have balanced business experience.
Technical competence
Marketing competence
Financial competence
Major reasons for business failure ranked according to frequency:
Inadequate front-end planning
Inadequate capitalization/under-funded
Inexperienced management
Wrong location
Inventory mismanagement
Capital investment in fixed asset too high
Poor credit practices
Unplanned expansion
Attitude
Inadequate records and financial knowledge
Unwillingness to employ and work with a banker,
accountant, and a lawyer
Lack of vision and purpose by the
owners/top level management
Lack of management systems
Lack of financial planning and review
Poor market segmentation or strategy
Competition, or lack of market knowledge
Lack of clearly defined business ethics
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