why companies going out of business

1. Project 2
Azhar Iqbal

2. Class and teacher any of your fav store went
out of business?

3. Overview
 Over the years, it’s have been seen several companies both big and small
closed shop. Several well-known brands have had no choice but go out of
business entirely. Since the beginning of 2017, major companies, including
RadioShack, Payless Shoe, Toys “R” Us, and Bon-Ton, have filed for bankruptcy
protection.
 Changing consumer tastes, evolving technology, corporate complacency, and
bad business decisions ended these iconic brands
 The biggest reason why stores are closing now is that what consumers want
has changed

4. OBJECTIVE
 By the fifth year in business, about half of all small businesses fail, according to
the U.S. Small Business Administration. Common reasons cited for business
failure include poor location, lack of experience, poor management, insufficient
capital, unexpected growth, personal use of funds, over investing in fixed assets
and poor credit arrangements.
 A poor or inexistent business plan is the reason for many business failures.
 A business that runs out of working capital before bringing in enough funds to
sustain its expenses is often a result of poor budgeting or unrealistic forecasts.
When setting up the initial budget, the business owner might underestimate
expenses, such as material costs, labor or utilities
 Poor management is a common cause for business failure

5. SOLUTION
 Every company has its highs and lows. Surviving the lows become the major turnaround
for businesses. any hiccups around business are a sign that you must start looking for
faster and smarter solutions. Some of the measures around these hiccups are cutting
operational costs, re-visiting company’s strategy, re-branding business or innovating
products to focus on new geographical location.
 Invest in employee trust. Keeping their trust and motivation intact is of utmost importance,
after all happy employees means happy customers.
 Customer-focused approach. Profitability is directly proportional to satisfied customers
which is achieved through a customer-centric approach.
 Managing cash flow is important for any business, even more for a growing business.
 When your business is not doing well, it is advisable to project and track cash flows on a
weekly basis that you can later move to monthly upon achieving stability

6. CONCLUSION
 Summing up, don’t shift focus stay lean, hungry and passionate.
The right way is to evaluate the right marketing mix for your
customers with right message and pitch. The right thing to do
here is to take a fresh approach for long-term sustainability This
long-term plan will tell you everything you need to do to fix
your business. It is a powerful tool and is a road map for you
and your team to fix your failing company

7. Let see what news saying
 https://www.cnbc.com/2018/12/31/here-are-the-retailers-
including-sears-that-went-bankrupt-in-2018.html