Common causes for business failure
Cause % of failures Specific pitfalls
Incompetence 46% Emotional pricing Living too high for the business Nonpayment of taxes No knowledge of pricing Lack of planning No knowledge of financing Not understanding record-keeping
Lack of managerial 30% Poor credit granting practices experience Excessive bad debts Expansion too rapid Inadequate borrowing practices
Lack of Experience 11% Carry inadequate inventory in line of goods or No knowledge of suppliers services Wasted advertising budget
Neglect, fraud, disaster 1%
cpa.utk.edu/pdffiles/adc24.pdf
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