The Top 10 Reasons for Business Failure

Recently, the UK Insolvency Helpline tallied the top ten reasons for business failure:

• Failure to focus on a specific market
• Failure to control cash (inventory, A/R A/P)
• Failure to control costs diligently
• Failure to adapt products to customer needs
• Failure to carry out market research
• Failure to assemble and utilize employee talent
• Failure to comply with statutory requirements
• Failure to implement a strategic plan for growth
• Failure to capture new markets
• Failure to recognize and manage capital requirements

Not surprisingly, financial issues were not exclusive to the list. Rather marketing, human capital, and operations issues all contributed to business failure statistics. In fact, financial distress is frequently a symptom rather than the fundamental driver of business failure. As a consequence, Newhouse Partners' Transform90™ turnaround methodology addresses marketing & sales, human capital, operations &technology, as well as finance.