Why most Businesses Fail

[AmorsoloX]

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always think of the human capital as a resource.. just like money it can be replenished.. or it can run dry...

make people perform parts of the system.. dont make people the system...


thats the big difference between big and small businesses.. big businesses apply leverage on the human capital while small ones di mka leverage sa labor..

there are many ways to compensate for loyalty.. hehehe.. worst case scanario kung wala jud loyalty is dako kaau imo cost sa trainings.. but pila ra pag lock sa contract dah..

kung daghan kaau ka business, its impossible nga ma hands on nimo... the best thing you can do would be to form a high-level management group... a business that operates all other businesses.. the mastermind.. another for of this is a holdings company

[salaryloans]

4.) LACK OF FINANCIAL DISCIPLINE

this is a very common mistake.. simply put.. kanang ang profit sa whole business gamiton daun for personal expenses.. nakalimot sa capital recovery and capital growth.. dont think of a business as a job, think of it like a child, where you have to feed it, guide it, let it grow.. dont exploit it (too much).. what you are playing with is not capital alone.. you are playing with time..

you dont need to be a master in accounting or finance.. its just common sense.. learn to save.. by i mean save, what i mean is not to put your money where you cant pull them out anytime.. example.. houses, time deposit savings.. ang imu savings kay dili intended patubo thru interest.. its intended for survival purposes during tough times..

example: naa ko nailhan giinvest niya iya money from the biz sa usa ka fund, when nihinay iya negosyo, wala siya nakuha nga kwarta kay nka lock man iya money sa fund, and kung iya kuhaon, dako man pud penalty.. in short, na greedy cya kay gihurot niya invest iya savings sa usa ka investment vehicle..

never put your eggs on a single basket... (thats why i own several businesses and investment vehicles)

imporante kaau nga liquid kanunay imo assets.. cold cash is the blood of all businesses..

(many would have remembered that im not much of a mutual fund fan, its because for me, hinay ra kaau and ma tie up ang ako capital..)

I think this issues is more about the proper mindset, having wrong mindset about finances will surely make business failed. Having a knowledge between the difference of asset against liability as explained by Robert Kiyosaki is very important.

Base on study most lotto winners went from rags to riches, went back again from riches to rags. The problem is not the money, but how to handle it.