Getting paid and bad debts/lack of capital/lack of liquidity
Show description|Hide descriptionThe graphic shows a ball and chain. Written on the ball is the word ‘debt’.
Figure 6 Chained to debt Getting the work is one thing, getting paid for it at a suitable rate for the time spent is another. The ability to negotiate a contract and then collect the money owed is an essential business skill. Not balancing the payments and income correctly could lead to cash flow problems. Insufficient cash to pay debts is the main reason small businesses fail.
Poor management
Figure 7 Poor managers rule by fear
Show description|Hide descriptionThe graphic shows two people in suits arguing. The person on the right is grabbing the tie of the person on the left and gesturing with his index finger.
Figure 7 Poor managers rule by fear Even in a micro business with no employees there needs to be a level of management, planning and reviewing of the business strategy. Setting unrealistic goals or plans falls into this category.