It actually takes many entrepreneurs years plan that company with which they dream so much. Overcoming fear, gathering the courage, and having the determination to finally open the doors is almost a feat.
However, there are many factors that can kill your businessSome that do it slowly and some that might break it before you even know it.
Administrative Factors
- Lack of internal controls
- Not having a monthly spending budget
- Lightness for managing finances
- Excessive or excessive expenses
- Too many ant expenses
- Inappropriate business location
Financial factors
- Lack of financial policies
- Not having an annual spending budget
- Not having an investment plan
- Lack of savings plans and reduction of expenses
- Excess unnecessary expenses
- Lack of a good collection system
Leadership Factors
- Lack of leaders in the company
- Not making a good team
- Equipment poorly coupled to get the job done
- Brawls, contentions and rivalries in the teams
- Little or no corporate culture
- Lack of vision
- Lack of a mission
- Unmotivated and purposeless staff
- Extremely conservative mindset for decision making
- Lack of update
- Fear of using technological tools
- Not listening to employees
- Lack of self-analysis in quarterly and annual results
- Firm and decisive decisions are not made
Factors Related to Sales
- Bad sellers
- Poor supervision of sales teams
- Lack of regular training for salespeople
- Poor after-sales service
- Lack of marketing and sales strategies
Product Related Factors
- Little quality control Products
- Deficient mechanisms for guarantee claims
- Mismanagement of costs and raw materials
- Excessive production costs
- Bad presentation of the product
- Poor brand marketing strategy
Factors Related to Services
- Bad customer service
- Poor or non-existent claims department
- Slow solutions
- Bureaucracy
Human factors
- Bad communication between employees
- Poor pay policies
- Not having an adequate selection of personnel
- Relying on poorly trained staff
- Lack of internal development policies
- Bad treatment of staff
- Exploitation
External factors
- Imposition or increase of taxes
- Insecurity and crime
- National policies that affect markets
- Unfair competition
- Inflation
There are many more factors that can kill a business And it is convenient to analyze, however, the obligatory question that we must ask ourselves is who is the real responsible or the culprits that companies are weakened? And while it is true that there are external factors, the percentage of businesses that are affected by these are much less than 10%.
Thus, the real culprits, although it sounds harsh, are almost always within the business and are usually those who have the reins of it and the only ones who fortunately also have the possibility of rescuing their business on time.
In your experience, what other factors can severely affect a company?
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