Why do think some business find themselves bankruptcy
- Thread starter Stardom22
- Start date
Inflation and mismanagement is the major cause of many companies going bankrupt. Some businesses due to mismanagement of their capital cannot be able to function effectively. When company does not have good management, its effect can be devastating.
In most cases it is usually due to poor management or misuse of company resources. I have seen companies doing pretty well suddenly go bankrupt over night, this is cause the resources at their disposal was used wrongly.
Most times, it is due to lack of financial planning, set up and management. Other times, it is due to a business incurring a major loss and it can't operate any longer.
Poor planning and mismanagement may be the main causes. However, there may be other external threats which affect the sales revenue of the business. During the Pandemic, a lot of travel agencies and retail business cannot survive because people don't travel and are not willing to spend.
I believe that the fastest way for you to make your business to become bankrupt is for you to be getting into unnecessary spending and expenses all the time more than what you make in profit from your business.
Some of the factors that cause a business to go bankrupt include capital problems, poor management problems, not keeping up with the demands of the times, being in the wrong location, and so on.
Continuous loss in business and availability of less capital further more miss management these are the key factor of bankruptcy of any organisation. Management should be aware of all important measures to take to prevent from it.
I agree mismanagement and lack of funds can be a killer combo for any business. Its all about staying on top of things and being proactive.
I would even have to narrow it down to lack of proper financial management in the business. This is because everything about being bankrupt has to do with management of finance in the business.
Yeah, financial Management is crucial in a business venture. If the finances of the business is not well managed it can lead to bankruptcy. Sometimes bad Investments also leads to bankruptcy in a business environment.
If the business owner does not have enough time, it will surely affect the business itself. Time management is the essential factor that he or she needs to consider. Some of them are so not into accurate when monitoring their businesses.
Anybody who wants to run a successful business must always create time for his or her business. there are some people that run multiple businesses simultaneously and they succeed.
