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Friday, 8 March 2019

Four Common Reasons Why Business Fall To Bankruptcy

By Angela Patterson


Running a business is surely risky. Looking at this new generation, many people now are becoming competitive and would strive hard to achieve their goals and be successful. And reaching the top is not easy since there would be lots of obstacles that would hinder you and it might either bring you towards the highest stair or perhaps drop you down to the bottom. And when the latter happens and when all of your efforts have wasted, you might need a bankruptcy attorney Oakland to guide you in the process.

Many individuals now are diving to business career. Unfortunately, not all of them succeeded. About forty percent of them based on statistics failed in five years. Meanwhile, thirty percent did not even reach two years. It just shows that this career is not that simple to achieve for a long time.

Furthermore, beginners might be intimidated by that statistics and lost their confidence. But take this in your mind that this path is never easy. It contains many complex challenges and it is up to you on how you will overcome it. Sadly, some businessmen failed to find the right direction. They missed some elements and that resulted them to face their downfall.

It might be because they have the wrong motivation and think that all people would like their ideas. Or perhaps the competitors are way better, making them surrender and decide to close down. Indeed those problems might also be a reason. But these roots below are the commonly reason why a certain company went broke.

No proper management in finance. You must know that managing the finances is really an important task because you keep records of the money you got in your hands. Most would hire an accountant to do the task. However, some prefer to handle it without professional health and as a result, they made lots of mistakes until their cash flow goes down to zero.

Poor Planning and Research. This is also another issue why they failed. Owners might not have made a proper and sufficient research that could make their products successful. For example, they had not thought about the demographic of their customers or neglected to think of possible competition. Most large companies have surely took months to derive a proper plan.

Poor skills in leadership. A leader must equipped good decision making skills and can work under great pressure. A leader must also know how to inspire their employees and guide them to right way. But some does not have those qualities and because of that, it resulted to their downfall.

Legal Problems. When your research and planning is not enough, you may end up violating some government laws. Some owners have done that and faces the risks on different angles. Even some big companies went down because of legal issues like money laundering. Unethical practice will follow some legal issues.

One small part could affect the whole part. This certainly is how business works. As you see, it does contain difficult challenges. But when you survive those challenges, it will give you experience and make you knowledgeable and capable in the end.




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