Solutions to avoid business failure can vary widely. There are countless businesses around us with different backgrounds, including different target markets and resources. For this reason, the types of risks and solutions to deal with them can also vary widely.
To be sure, no entrepreneur starts a business to fail. They try their best to start, operate and grow the business. Sometimes they are successful. But, at other times, they failed. And failure does not discourage them from starting another business.
Business failures don’t just occur due to internal factors, such as poor management and cash flow problems. But, it was also due to external factors. For example, more established companies pursue aggressive strategies, which ultimately kill smaller businesses with limited resources.
Likewise, when the recession hits, many businesses go bankrupt. That’s not just the case for small and young businesses, but also for large, established companies.
How can we mitigate failure? First, we identify the source of the risk, what are the possible causes of failure. Second, we sort them from the most strategic to the least strategic, which ones have a significant impact and are most likely to occur. Third, we prepare anticipatory steps before the problem actually …