Wednesday, December 9, 2009

FIVE Reasons Why Businesses Fail

FIVE Reasons Why Businesses Fail
Improper Strategic Planning
Lack of precise goals that include deadline, in a formalized strategic and operational business plan that include employees, and consult and review of the business plan on a regular basis.

Inadequate Financial Recordings
Poor keep track of how much cash in- & out-flowing that to understand the financial status. Lacking of maintaining detailed books that resulted to ineffective cost control.

Poor Internal Control Procedure
Poor communications ensued from improper internal control procedure may result to inefficient business running thus generating inevitable cost e.g. hidden cost.

Poor Customer Relations Management
Ineffective interation with your customers about their needs and wants. Lack of unique selling points that set your company apart from competitions.

Poor Employee Relations Management
Poor working environment that keeps staff motivated. Lacking of employee development and involvement in the business, training that promotes a sense of ownership.

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