View Full Version : Top 17 reasons why LCO's fail

08-25-2004, 11:15 AM
Things to consider and look out for. Source (http://asbdc.ualr.edu/bizfacts/8002.asp).

Failure Factors

- Inefficient control over costs and quality of product

- Bad stock control

- Underpricing

- Bad customer relations

- Failure to promote and maintain positive image

- Bad relations with suppliers

- Inability to manage and make decisions quickly and act on them

- Failure to keep pace with respect to the competition as well as the industry

- Illness or loss of personnel

- Reluctance to seek professional assistance (i.e., CPA, lawyer, or insurance agent)

- Failure to minimize taxation through tax planning

- Inadequate insurance

- Loss of impetus sales

- Bad personnel relations

- Lack of experience

- Insufficient working capital

- Bad budgeting