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6 Factors That Can Bring Down a Healthy Business

In the US, business failure cases are increasing day by day. Around 40,000 businesses are failing every month. When a business fails, it is not only the owner that suffers, numerous employees, vendors and customers are also affected.

Although there are a variety of factors that can point to a business failure in the future (factors like market condition, the quality of product, demand, supply etc). There are instances, when, an otherwise smooth-running business can crumble.

In this article we will discuss 6 prime factors (also called 6 Ds) that have worked toward the failure of thousands of businesses in the US.

DEBT: In business, debt are a primary cause for an untimely exit. It takes place when the interest on the debt taken start piling up and the business is unable to fill the gap between this interest and income. As a result, the businessman has to exit to have to plunge further in debt.

DEATH: Businesses, that are run by sole proprietors, usually collapse after the death of the owner. It is because there is hardly anyone who knows the business as closely as the proprietor did.

DIABILITY: Disability of the owner or a business partner can put significant impact on daily workloads, cash flows, etc., which in the long run can lead to the closing of a business.

DIVORCE: A divorce can be quite hard on the owner; mentally as well as financially – as a result the quality as well as quantity of output is bond to decrease.

DEPARTURE: Your key employee leaving you and joining your competitors can be a blow that very few companies can take. The advantage is two times for your competitor as on one hand it gets a good employee and on the other hand you lose your edge.

DISASTER: Not in your control; theft, intentional/ unintentional hardware, software or data tampering can all make a healthy business to collapse.

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