Multiple reasons that can cause a business to go bankrupt

[Starmix]

There are times that a business owner forgets to update his planning thinking that his old plans may be sufficient to support the latest technology and trends in the market. Another cause is inadequate planning, forecasting, budgeting, and cash flow management. Next is the lack of profitability. A business that consistently operates at a loss or fails to generate sufficient profits may not be able to sustain its operations in the long run. Further, excessive debt accumulation, whether through loans, credit lines, or other financial obligations can create a burden on the business and lead to bankruptcy if repayment becomes unmanageable

 

[Augusta]

The first thing that would make a business go bankrupt is the problem of low cash. When the inflow is low but outflow is high, inevitably, the company would collapse and go bankrupt.

 

[Starmix]

Bankruptcy happens if the busiess owners never bother to check the flow of their sales if constant or fluctuating. Also, lack of innovation and inventory are gaming the factors for a business to fall.

 

[Suba]

No businessman wants their business to fail or go bankrupt, but internal and external circumstances often become obstacles for them to grow their business to achieve success. So in evaluating business bankruptcy, we don't only focus on external factors, but we also have to pay attention to internal factors.

 

[Jason]

A good business plan is essential unless it's some situation where you can't go wrong, minus an earthquake or something. Well, some businesses like Wal Mart or Chick-fil-A in the US seem unsinkable, assuming another one isn't too close by.

 

[Starmix]

There is a need to focus on both sides the external and internal factors. In external, customers are not satisfied with the business services, the products are outdated, and for the internal factor, it could be dissatisfaction of the employees because of poor wages making them lazy and unsupportive.

 

[neku]

Lack of orders is the main reason why I feel a business can become bankrupt. Some online businesses where the business owner is working from home face the problem, since they find that they are not getting any orders due to correspondence theft.

 

[eLdavis]

poor management has always been and would always be a major problem and a reason why so many business today go bankrupt. There are so many businesses that have poor management, they fail to manage not only the resources they have and as well as their customers.

 

[Starmix]

There are certain ways to protect the business against bankruptcy. Monitoring, inventory, innovation, assessment of sales flow, and strategic planning are among the vital protections for the business. The absence of some of these will result in problems for businesses to dive into failure.

 

[monster_masterpiece]

There are certain ways to protect the business against bankruptcy. Monitoring, inventory, innovation, assessment of sales flow, and strategic planning are among the vital protections for the business. The absence of some of these will result in problems for businesses to dive into failure.

The problem is most of companies make sales with check and when we say check I could give you a check and then precise to deposit on the bank next month then hole a month the company has sold something and not having money and same gets merchandise and give check and precise that you could deposit after one month that leads to bankruptcy.

 

[Starmix]

The problem is most of companies make sales with check and when we say check I could give you a check and then precise to deposit on the bank next month then hole a month the company has sold something and not having money and same gets merchandise and give check and precise that you could deposit after one month that leads to bankruptcy.

That check could be a bouncing check one major cause for bankruptcy for the company may find it hard to purchase goods when capital is lacking. It is best not to accept a payment through a check. One could be charged for estafa paying in a bouncing check

 

[Starmix]

Poor financial management, economic downturns, excessive debt, or intense competition are only a few causes of business bankruptcy. Other factors include operational inefficiency, legal problems, and outside shocks. For a firm to be resilient and sustainable, these issues must be recognized and addressed.

You are so right on that and all those you mentioned are among the potential causes of a business to go bankrupt. The business owner must change his strategic plans if sense that they are ot anyone effective because the competitors are doing the same.

 

[monster_masterpiece]

You are so right on that and all those you mentioned are among the potential causes of a business to go bankrupt. The business owner must change his strategic plans if sense that they are ot anyone effective because the competitors are doing the same.

Before it becomes too late it must be done from the beginning from doing the work strategy, because in certain cases even you change strategy it is too late and it doesn't reduce damages due to bankruptcy.

 

[Starmix]

Before it becomes too late it must be done from the beginning from doing the work strategy, because in certain cases even you change strategy it is too late and it doesn't reduce damages due to bankruptcy.

It would certainly happen if the business owner is not persistent in implementing his plans fully from the beginning up to the time he sensed his business is in good shape and in good flow of sales.

 

[Kirubel]

There are a lots of reasons why a business falls and go bankrupt and some reasons are spending money on things that are not necessary for the business running which is in another term being extravagant, and also not having money management and not setting a goal.

 

[Starmix]

There are a lots of reasons why a business falls and go bankrupt and some reasons are spending money on things that are not necessary for the business running which is in another term being extravagant, and also not having money management and not setting a goal.

That is s true, business operators are doing it without thinking of the results of their actions spending much daily using the sales or profit from the business. He must control his desires of spending or else his business will go down.

 

[eLdavis]

Poor financial management, economic downturns, excessive debt, or intense competition are only a few causes of business bankruptcy. Other factors include operational inefficiency, legal problems, and outside shocks. For a firm to be resilient and sustainable, these issues must be recognized and addressed.

This are good reasons and also very common like in the case of diamond bank where the owners son misused the whole resources of the bank, they ended going bankrupt.

 

[Kirubel]

That is s true, business operators are doing it without thinking of the results of their actions spending much daily using the sales or profit from the business. He must control his desires of spending or else his business will go down.

True managing the money we spend on daily base should be monitored and managed and we need to have a budget plan so we can limit our daily spending's.

 

[Starmix]

True managing the money we spend on daily base should be monitored and managed and we need to have a budget plan so we can limit our daily spending's.

A business owner must be smart to avoid business failure. It's better if he could do sales inventory and auditing by his eternal auditor to know updates and know the strengths and weaknesses of the business.

 

[Crystal]

Inability to manage business fund can lead to fluctuations or business to be bankruptcy. It's important for a business holder to master on how to manage business funds.