5 Ways Your Business Will End - And How To Avoid Them #130
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Why do businesses actually fail? Not the vague, one-size-fits-all answer, but the five specific ways it really happens to owner-managed businesses turning over between £1 million and £20 million. In this episode, Claire and Simon work through the five most common causes of business failure, then rank them from least to most dangerous based on what Claire sees across hundreds of client businesses. This one is essential listening for any founder who wants to spot the warning signs before they become terminal.
Key Topics Covered:
- Why business success has a thousand causes but business failure tends to fall into only a handful of patterns
- Taking on too much or the wrong kind of debt, and why repayment terms rarely match the return an asset generates
- Over-reliance on a single customer, contract, or connected supply chain, and why this risk hides in plain sight
- Overtrading and losing control during a growth phase
- Disproportionate ratios, from long payment terms to an oversized payroll, and why these quietly strangle cash flow
- Why poor financial visibility is the root cause sitting underneath almost every other failure mode
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ABOUT THE HOST:
Claire Hancott through Profit Cash Growth helps 7 & 8 figure business owners to increase their profit, improve their cashflow and grow their business using their numbers.
As a finance director & chartered management accountant, Claire has nearly 20 years’ experience in finance and running businesses of her own. This gives her a unique insight into the information and support business owners need to grow a financially successful business.
Claire passionately believes that every business should be run by the numbers because the numbers in your business are telling you a story about what is and isn’t working and where your opportunities lie. Claire’s mission is to provide insightful management accounts, reports and advice to business owners and support them to make smarter decisions.
*The content of this podcast is for entertainment purposes only and does not constitute professional advice.