Failure will happen, sometimes you will win, sometimes you will learn, but as an entrepreneur or business leader, you are responsible for employees and managers, and you must do everything to protect yourself from failure. As an entrepreneur or leader, please do your best to avoid these major mistakes that will lead to business failure.


![images (10).jpeg](https://cdn.steemitimages.com/DQmSYEQtfFyzNHw7nqYC16ffRFDgyixMW9xqEGh5un2dDs2/images%20(10).jpeg)



[image source] (https://steemit.com/life/@misbar/3-causes-of-business-failure-1620cbf9063c3)

One of the main reasons for the failure of the business is its management. Senior executives are the backbone of a powerful business. The decisions and strategies taken by the management can determine the fate of the company before its creation. Often many decision makers (managers / CEOs) do not understand the capabilities of the business and the importance of creating clear long term strategies, goals, strategies or objectives, which can be achieved if you are inexperienced in the management of a management team. K. A worker. Throughout the year, I have seen and understood that people are promoted to leadership positions because they look like good people, not because they don't have the skills or qualifications to. properly trained management.

The second main reason for failure is a lack of understanding of the importance of positive cash flow. Money is a return on investment, no matter what others tell you, no matter how good your balance sheet is, but the truth is that when you cannot pay employees and creditors on time, you will not have a job, what you have or may succeed Business. I looked at how many corporate executives showed me my positive balance sheet, but failed to convince banks or other financial institutions to find money that could save them. It is very important to ensure that the person in charge of the collection (credit manager or CFO) is doing a good job, getting a good salary and ensuring that the company will not encounter problems. This is very important. Cash flow is the key to the success of any company that wants to survive tough times. If employees don’t know how much money they need to run their business smoothly, disaster is on their side.

Managers and directors are easily distracted by many parallel tasks every day, because their focus will shift and their thinking will shrink. A good manager or supervisor will never focus on important things and priorities. The downside is that when they fall into trivial perfectionism, they can and should leave it to others. 

Even the best of us can suffocate at some point in our lives. None of us have mastered the wisdom and information art of the industry. Therefore, not understanding the need to seek expert advice to become a leader or entrepreneur of a poorly functioning or bankrupt business will ultimately lead the business in the wrong direction. To set yourself apart and get the most from your business, you must be prepared to take advice or guidance from people who have undergone business transformation in the past; failure is not a person, but an event.

If you must be successful in your business you must put all of the above into consideration and make the necessary amendment.

Thanks for reading this article.