20 WAYS TO KILL YOUR BUSINESS
1.)Lack of Experience by the owner
Symptoms: Always doing trial & error
.2.) Poor Location
Symptoms: Low sales during peak hours & peak season
3.)Wrong or to much inventory or poor inventory management
Symptoms: much inventory on slow moving & obsolete products. Purchase Returns or Bad Orders are increasing.
4.)Permanent Equipment Problems
Symptoms: Delayed production & Deliveries or Repair & maintenance expenses increasing
5.)Poor Credit Practices
Symptoms: Too much long overdue accounts, usually beyond 120 days.
. 6.)Increasing Personal Expenses
Symptoms: Unliquidated Cash Advances
7.)Premature Expansion of the Business
Symptoms: Pay Back Period is too long & Return of Investment is very low.
8.)Bad Attitude of the owner or employees
Symptom: Always heard a complaint
9.)Letting costs get out of control
Symptoms: Keeping Savings account that pays 2%while paying credit card charges & interest 3.5 to 5%
10.) Low Sales
Symptoms: Inventory is high
11.)PROSCATINATION OR LIVING IN THE MOMENT
Symptom: Failing to establish monthly financial Statement
Symptoms: Loyal customers don’t buy anymore or No. of Customers are decreasing.
13.)Crime (Internal or External
Symptoms: Inventory always doesn’t match with theoretical vs. physical
Underestimating the importance of Cash flow Management
Symptoms: Can’t meet the day to day expenses
Remember: Cash is king
15.)Sloppy Record Keeping
Symptoms: No available data on sales, inventory, purchases, A/R & A/P & other biznes transactions at the end of the day
16)Disregarding Employees Concerns
Symptoms: Turn over is high
17.)Failing to Delegate
Symptoms: Do it all attitude, “ako nalang dali pa” or Cant leave the biznes more than a month.
18.)Offering something the customer doesn’t want
Symptoms: Customers are inquisitive about what’s new
19.)NOT OBSERVING GOVT. REGULATORY BODY OR DISREGARDING NOTICES FROM GOVT. AGENCY CONCERN
Symptoms: Too many notices & audit by Govt. agency concerned