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COMMON REASONS WHY BUSINESSES FAIL Presentation

When many entrepreneurs start a business, failure is the last thing on their minds. However, with four out of every ten companies failing to survive five years, it is really worth checking out for red flags.

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COMMON REASONS WHY BUSINESSES FAIL Presentation

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  1. MYM ACCOUNTING AND BUSINESS CONSULTANCY COMMON REASONS WHY BUSINESSES FAIL www.mymconsultancy.com.au

  2. NOT MAKING AN INVESTMENT IN A PROPER ACCOUNTING SOFTWARE It is critical to the success of your business to have full knowledge of your numbers. In order to do so, you need to make use of good accounting software which can look after all aspect of your accounting. By automating your routine task, reconciling the bank and managing your debtors and creditors, you can stay on top of your business.

  3. UNSATISFACTORY FINANCIAL MANAGEMENT Financial mismanagement is the single most significant contributor to corporate failure, according to statistics. Each and every business owner must be cognizant of their financial circumstances and working capital at all times. Precise and reliable income and cost forecasting may result in a few unexpected events, and this will eventually help facilitate your cash flow. Business owners should also understand and regulate their costs, while also identifying threats and opportunities, in order to avoid unforeseen problems.

  4. UNSUSTAINABLE EXPANSION According to the adage, failing to plan is planning to fail. You’ll never get there if you don’t know where you’re going. Growing beyond resources within the organization or skills is a common issue for new or successful businesses both. Growth comes with a variety of issues that can affect your company’s financial performance and liquidity position, ranging from debt that increases faster than your income to new members of staff who clearly don’t understand your business like your initial employees.

  5. INABILITY TO SET APPROPRIATE PRICES The sad fact for entrepreneurs is that pricing is extremely difficult to nail. One of the most important strategic decisions is the price a company charges for its product or service. Pricing can impact whether or not a consumer buys a product. When it comes to pricing, setting it too high or too low can have an influence on sales. The price you fixed tends to affect your profitability per unit sold, with higher prices yielding a better margin per item if sales are not lost. Higher prices that result in lower trading volumes, on the other hand, can significantly reduce profits because your operating cost per unit rise as you sell fewer items.

  6. WEBSITE www.mymconsultancy.com.au REACH OUT EMAIL ADDRESS info@mymconsultancy.com.au PHONE NUMBER 0437 157 610 Disclaimer : This is a generic Information & post; content about the services can be changed from time to time as per your requirements and contract. To get the latest and updated information, contact us today or visit our website.

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