You look at the number of businesses that failed in South Africa last year and wonder what the causes were.
There must be many reasons why 4,000 businesses failed in 2013. What did they do wrong? Why didn’t they make it?
I haven’t seen an analysis of those 4,000 businesses and the reasons for their failure. This total or aggregated number is reported under insolvencies. But anyone who’s been in business for a while will know some of the possible reasons. It could be the economy. Slow demand or crashing demand. Management inexperience. Cash flow management. Financial management. Skyrocketing costs. Wrong identification of markets and demand projection. Continue reading “How far are you willing to venture outside your “circle of competence”?”
