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  • Consultant at NHCS

Amazing methods to avoid business failure in any crisis


Want to open a new business or already owing a small business? There are many possibilities for the business to survive in all the factors. A large amount of success and failure depends mainly on the external factors of the business. Small business owners have technical and professional skills and almost lack management skills. Everyone included in the business such as suppliers, customers, etc fails when the business fails.

According to studies;

  • Cash flow problem causes 90% of business failure.

  • Approximately 80% of businesses serve for 2 years, 50% of them for 5 years, and merely 30% stay for 10 years.

  • 10% of businesses stop every year.

  • Around 50% of small business starts at home.

Failure of the business depends on two factors namely, internal factors and external factors. So the reason for business failure may depend on these two factors.

Some internal causes of failure:-

  • Need for good management-

To run a small business and get a success rate a need of good management is very important. Not only creative and operational skills but good business and managerial skills are also required.

  • The shortfall in invoicing-

Bad or shortage in invoicing practices tells the company’s financial position.

  • Inadequate sources of finance-

An unstable capital represents a warning of the deficit of business. If a small business begins to experience financial issues then inadequate capital will deepen the bad condition of the business.

  • Bad debts-

The poor and bad debits increase rapidly due to financial crises or due to a lack of customers.

Some external causes of failure:-

  • Some of the particular and strict rules of government for small businesses that are must be followed.

  • Insolvency of the main supplier of the business causes failure of the business.

To overcome all these internal and external factors of business failure, here are some tips to avoid business failure.

5 amazing ways to stop the business from failing:-

1. Willingness to work in business is important-

To avoid the business from failure one should be willing to work hard. When you can think new for the business you can give great outcomes which will be considered fruitful for the organization. Mix your commitment with your passion to tell everyone about your brilliant ideas.

Just thinking of an idea is not sufficient to achieve goals you have to put extra effort and work hard to get what you want to achieve for your business.

2. Watch out for more questions-When one wants to avoid business failure they search for new and more ideas. When a new idea is discovered it resolves some problems to some extent but not fully. It leaves some loopholes behind and to overcome all these possible loopholes we should undergo some more questions and consider some more ideas that will help in the future.

3. Follow a trial and run approach-

To avoid business failure one should use a trial and run approach. This approach means that when at some times we think that everything is running smoothly and there is no problem in the business then suddenly an issue arises and there comes a need for some changes in the idea. To overcome this situation we should use a trial and run approach. This approach helps us to first check all the loops in the business with your idea and if everything is normal then put your idea into working. After that ask your customer for feedback and check shortcomings and then again put a better one into action.

4. Monitor your cash flows:-

Protect your organization's financial situation to avoid business failure. One should have a close eye on the finance of their business and try to maximize the profit of their business.

When a small business is started it suffers from a lot of cash issues. So to manage cash flow and overcome this issue one should do everything to solve the cash issues for their business.

5. Make a master plan for the future:-

To avoid business failure one should take decisions that will help in the long run to achieve success in the business. There is much software available in the market and online also that will help small business owners to make plans and bring those plans into action. One of the very efficient software available online is online billing software. This software is very useful and provides different resources for business success.


You may face negative feedback but this doesn’t mean that you lose your willpower and morale. Instead, that feedback should be taken as a word of encouragement. To avoid business failure and to achieve success many times depend on luck, you just put up your best efforts and move forward to achieve success and avoid failure. To achieve success and avoid failure in business the owner should follow the amazing ways to overcome or stop business failure.

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