Interesting blog in the NY Times by Jay Goltz on what he feels are the top ten reasons businesses fail. The entire article can be found at his blog, but I’ve listed below his top ten:
1. The math just doesn’t work.
2. Owners who cannot get out of their own way.
3. Out-of-control growth.
4. Poor accounting.
5. Lack of a cash cushion.
6. Operational mediocrity.
7. Operational inefficiencies.
8. Dysfunctional management.
9. The lack of a succession plan.
10. A declining market.
While I agree in general with those reasons, I’ve also seen businesses fail because of poor customer service, poor hiring practices, an owner who always had to be the smartest person in the room, owners who wouldn’t listen to their employees, poor (or no) use of technology and finally because of a lousy business model.