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Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
Entp 15,Seven Business Crisis
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Entp 15,Seven Business Crisis

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  • 1. Seven Business Crisis
  • 2. What is Business crisis?
    • Business crisis means creation of such a circumstances in the business which are not according to pre-determined standards.
    • These circumstances may results into the winding up of business, if not removed or solved.
  • 3. List of Business Crisis
      • Starting Crisis
      • Cash Crisis
      • Delegation Crisis
      • Leadership Crisis
      • Finance Crisis
      • Prosperity Crisis
      • Management Succession Crisis
  • 4. Starting Crisis: Causes
    • Lack of thorough study of market potential
    • Lack of all round managerial ability
    • Inadequate arrangements for keeping accounts
    • Underestimation of required capital
    • Ignorance of tax-liabilities
  • 5. How to beat Starting Crisis?
    • Selection of familiar project
    • Making realistic, not over-ambitious plans
    • Keeping up-to-date business information
    • Encourage participation of investors
    • Meeting with tax-consultants
    • Estimation of realistic capital investment
    • Taking care in selecting machinery
  • 6. Cash Crisis: Causes
    • Over investment in Fixed assets
    • Excessive attention to growth in sales and Profit
    • Unable to get bank finance
    • Expansion of business without proper planning
  • 7. How to beat Cash Crisis?
    • Preparation of Cash Budget
    • Understand difference between cash and profit
    • Monitoring on inventory and receivables
    • Appoint good accountant
    • Take advice of Banker and Financial Consultants
  • 8. Delegation Crisis: Causes
    • Inability to delegate responsibility
    • Inability to share the decision making
    • Negligence to organizational
    • pre-requisites
    • Psychological reasons
    • Lack of time
  • 9. How to beat Delegation Crisis?
    • Appointment of a really capable, competent and effective person in the company
    • Effective supervision on new person
    • Counseling from expert consultant
    • Giving high remuneration package
    • Amalgamation with other company
  • 10. Leadership Crisis: Causes
    • Single owner/partners unable to manage responsibilities of large firm
    • Failure to delegate authority and to develop a management team
    • Failure to adopt the managing style of an effective leader
  • 11. How to beat Leadership Crisis?
    • Be an effective leader
    • Build a team of mangers/leaders
    • Give them sufficient authority
    • Act like a leader than a supervisor
    • Constant evaluation of oneself
    • Concentrate on business strategy
    • Be a good and effective communicator
  • 12. Financial Crisis: Causes
    • Failure in choosing right source and combination of fund
    • Failure to go for a public issue
    • Over ambitious and unrealistic expansion plans using surplus fund
    • Psychological problems of loosing control
  • 13. How to beat Financial Crisis?
    • Proper delegation of financial power
    • Consult experts and bankers
    • Going for public issue as and when required
    • Detail evaluation of each source of capital
    • Obtain Govt. Assistance
    • Leasing option
  • 14. Prosperity Crisis: Causes
    • Satisfaction with current success
    • Failure in coping up with environmental changes
    • Decline of market share and profit
    • Over-confidence of an entrepreneur
    • Un-expected illness or death of entrepreneur
  • 15. How to beat Prosperity Crisis?
    • Always keeps your eyes and ears open
    • Do not relax even in prosperity
    • Be aggressive, not passive
    • Do not be overconfident
    • Entrepreneur always remember that
    • “ Success today is no guarantee of success tomorrow”
  • 16. Management Succession crisis
    • The crisis arises when founder of business dies, and it leads to following three problems:
    • Who will be the next?
    • Split in voting rights
    • Wining loyalty and trust
  • 17. Causes
    • Tax and legal Issues
    • Problems of control
    • Problem relating to valuation
    • Partnership and ownership rights
  • 18. How to beat it?
    • Have a clear-cut plan for succession
    • Advance action in selecting management successor
    • Must have one person with general management skill and few others with special skills
    • As a successor it is better to select “team” rather than a single person
  • 19. How to beat it?
    • Always invite competent person in BoD
    • Develop club of like minded people
    • Constant interaction with banker and investors and lawyer
    • Plan for preparation of will, and transfer of shares
    • Brief family about key elements of business

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