Of course, there are external factors that businesses have no control over. Sadly, the COVID-19 Pandemic is a prime example of one. Since such events are unavoidable, let’s focus on internal factors that companies can act on.
3. Inadequate business plan
As mentioned in the first point, budgeting is a key element of a business plan. But it’s not the only factor within the plan that will break a business.
A good business plan should include:
A comprehensive description of the business
Workforce needs and compliance (current and future)
SWOT analysis
Budgets
Benchmarking Analysis
Marketing Plan
But a solid initial business plan isn’t enough. Business owners should review and modify it regularly to keep with the pace of the industry and assess internal goals. Many failed businesses in this scenario end up listed on business marketplaces because there are entrepreneurs out there equipped to change a poor business plan.
(Blog."Reasons why businesees fail and how to avoid them". Liveplan 2021)