5 common reasons stable businesses become insolvent
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Whether your business is growing month after month or continuing to generate a stable amount of profit, poor habits and cash management can often cause it to go from stable and successful to insolvent in very little time.
Businesses become insolvent for a wide range of reasons. Some businesses face a cash flow crisis caused by customer non-payment, while others simply fail due to changes in market conditions or increased competition from other businesses.
Even if your business is doing well, it’s important to understand that insolvency is always a possibility, and that taking steps to protect your business against it is an excellent idea.
As the old idiom states, it’s best to “hope for the best, and prepare for the worst.” By familiarising yourself with the most common causes for business insolvency, you’ll be better able to protect your business from falling victim to them.
In this post, we’ll examine five of the most common reasons stable, successful and profitable businesses beco...
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