What is business
Business is a person regular occupation, profession, or trade. Expert typically conduct their businesses over the internet
Businesses is also refer to an organization or enterprising entity engaged in the commercial Industrial or professional activities, the purpose of a business is to organize some sort of economic production of goods and services.
Some drawback in businesses that leads to losses
Family involvement: this is on of the key factors that brings winding up of a business, when a family member who's not competence enough in handling the affairs of the businesses such that, the person is inexperience in that line of business is carrying the day to day activities or management of the business thereby making the business into bad managerial plans and the purpose in which the business is established is not meant to, further more including all the irrelevant family expense into the businesses.
Absence of creditors and debtors book: when the managers of the business don't keep adequate record of all the business creditors and debtor's it wind up the business because there will be no fund available to run the business adequately.
Lack of proper book keeping: A business manager that don't keep accurate book keeping shows a bad signal that the business won't last long enough, when the daily transactions of the business are recorded it will bring negative impact to the business.
Indebtedness by a customer: When customers to the business are owing the business without repaying it as at when due or refused to pay back to the the business when they are called upon it brings down the business.
Poor planning: poor planning of a business affect the businesses negatively, when the business owners don't put adequate measures in place for the business to strive it brings the business to an end.
Localization:t he place where a business is situated is basic factor the makes a business either to succeed or not, the environment in which a business is sighted can affect the progress of the business, when the location of a business is not accessible to the customers it brings the business to an end
Over and under staffing :When the business don't have adequate number of staff needed to run day to day activities of the business is negatively affect the business, it's over staff it can affect the financial strength of the business when it's under staff the objective of the business will not be meant
Remedies to the factors listed above
** Family involvement :family members who are competent should be allowed to manage the business only experienced family member should be part of decision making of the business, family financial load that are not necessary should be attached to the business
Absence of creditors and debtors book:there should be adequate recording of creditors and debtors book to ascertain who the business is owing and that's owing the business
Lack of proper book keeping :there should be a comprehensive book keeping of the businesses transactions to ensure that all financial day to day activities of the business are recorded
Indebtedness :the business owners should ascertain the credit worthiness of a customer before selling goods to him or her on credit
Poor planning :the business should be properly planned to ensure smooth running of the business so that the business won't run into losses rather makes profit
** Localization :A business should be sited in a place that a customer can access it easily without delay, there should be nearness of the business to the customers and ease road network
Over and under staffing :there should be adequate number of staff who carry the day to day management of the business, there should be no room for under staffing or over staffing
Conclusions
Every business owner should ensure that he or she should take all the above listed matters into consideration and should treat it as matter of urgency because businesses are set up to make business and never to incur losses