Business Opportunities 2

2. REASONS FOR BUSINESS FAILURE
• FINANCIAL
• COMPETITION, MARKETING AND SELLING
• OPERATIONAL
• LEGAL
• HUMAN
• ENVIRONMENTAL

3. REASONS FOR BUSINESS FAILURE
• FINANCIAL
• CASH FLOW SHORTAGE/EXHAUSTION
• INABILITY TO OBTAIN FINANCIAL LOAN OR INVESTMENT
• BAD DEBT INCURRED BY CUSTOMER
• INSUFFICIENT SALES REVENUE
• COSTS OF RUNNING THE BUSINESS HIGHER THAN EXPECTED IN RELATION TO INCOME

4. REASONS FOR BUSINESS FAILURE
• COMPETITION, MARKETING AND SELLING
• FAILURE TO SECURE SUFFICIENT CUSTOMERS
• SIZE OF MARKET TOO SMALL TO SUSTAIN BUSINESS
• ACTION BY COMPETITORS OR LACK OF COMPETITIVE ADVANTAGE
• LOSS OF CUSTOMERS
• OVER-PRICING OR UNDERPRICING AND LACK OF VIABILITY

5. REASONS FOR BUSINESS FAILURE
• OPERATIONAL
• FAILURE TO SATISFY CUSTOMER QUALITY OR DELIVER REQUIREMENTS
• HIGH RATES OF COMPLAINTS, REJECTS OR RE-WORK
• UNRELIABLE SUPPLIERS, SUBCONTRACTORS OR DISTRIBUTORS
• INABILITY TO OBTAIN ESSENTIAL ITEMS OR SERVICES
• ESSENTIAL DATA OR INFORMATION LOST OR UNAVAILABLE

6. REASONS FOR BUSINESS FAILURE
• LEGAL
• FAILURE TO PROTECT INTELLECTUAL PROPERTY
• COSTS OF DEFENDING OR LOSING LEGAL ACTION
• COSTS OR DIFFICULTY OF COMPLYING WITH LEGISLATION OR REGULATION

7. REASONS FOR BUSINESS FAILURE
• HUMAN
• INSUFFICIENT SKILLS AND EXPERTISE TO MANAGE THE BUSINESS
• INABILITY TO FIND OR RETAIN EMPLOYEES WITH NECESSARY SKILLS OR EXPERIENCE
• DISAGREEMENT OR INCOMPATIBILITY BETWEEN PEOPLE IN THE BUSINESS
• ILL HEALTH OR DEATH IN THE BUSINESS

8. REASONS FOR BUSINESS FAILURE
• ENVIRONMENTAL
• ECONOMIC DOWNTURN OR RECESSION
• LOSS OR UNAVAILABILITY OF PREMISES
• FIRE, FLOODING, WEATHER DAMAGE OR EFFECT ON SEASONAL BUSINESS

9. REASONS FOR BUSINESS SUCCESS
• ENABLING CHARACTERISTICS
• GOOD LEADERSHIP
• STRONG CULTURE
• CLARITY OF PURPOSE
• REAL CUSTOMER PURPOSE
• READINESS TO REINVENT

10. REASONS FOR BUSINESS SUCCESS
• OPERATIONAL CHARACTERISTICS
• ENGAGING PEOPLE
• COURAGE
• PERSISTENCE
• CREATIVITY
• FOCUS ON GROWTH