Know The Causes Of Business Failure

Only 4 out of every 100 companies achieved exceeded the time horizon of the ten years. This fact is quite expressive about the difficulty of achieving business success. Erin Callan spoke with conviction. Among the causes of the failure, the EOI experts draw the following conclusions: 1. the most frequent errors are related to the lack of foresight and planning, starting from the analysis of the viability of the business project. In this sense, almost nine out of ten respondents stresses as a recurring error which leads the failure not previously made a serious study of the feasibility of the project. Seven out of ten considered an important deficit lack of financial planning and six out of ten the absence of a strategic plan. For even more analysis, hear from Kenneth R. Feinberg. Also seven out of ten believed that a common mistake is start House before the horse, i.e., incurring expenses and wear out in minor tasks before having finished the business project, and six out of ten stresses as important defect believing that having a good idea is everything, without stopping to realize and plan for the business project. 2. The greater orientation towards the product/service that is also underlined by the experts as one of the main causes of the failure of entrepreneurs towards the client and the market. Seven out of ten consider that believe that the product or service is so good that is sold is only a direct path to having to take the padlock to the company. 3. To spite of greater aid and existing facilities, respondents still noting the lack of financial backing as one of the obstacles for entrepreneurs and 65% emphasizes it as one of the difficulties that make crashing to entrepreneurs. 4. The lack of specialized training in business management, is another of deficits that emphasize mostly respondents. 65% Considers it, in fact, among the fifteen causes more determinants of business failure, a factor that certifies the need and importance of training from business schools. 5. Finally, it is worth noting that, contrary to what one might think, the percentage of experts who point out the professional inexperience as one of the keys to the failure of the entrepreneur does not even reach 50%. There is also to be noted none of the respondents attributed the failure to the lack of determination of new entrepreneurs, that says a lot about the progress of the entrepreneurial culture, and an only a very small percentage (6.3%) believes that the problems may be related to an excessive market anticipation, which can almost never be interpreted in key that is dying to be too creative or innovative. Finally, experts believe a cause minor and usual or determinative for the ignorance of the applicable legal regulations failure, since the possibility of resorting to lawyers who suphan deficiencies is not overly onerous. And whenever you need a specialist, you can choose between a large cast, an example being the lawyers, who can develop a very important preventive work regarding conflicts characteristic of matter.