Businesses don’t fail; leaders do. The kind of leader you are will determine the kind of business you have. Your decision making is the most important aspect of your business. But why do some businesses go bankrupt? The answer is poor leadership. Below are some of the reasons attributed to business failure and why you should avoid them.
Whatever your title is, if you do not do the right things for the right reason, you will fail. Leaders who fail to show a constancy of character will not create trust and loyalty.
When you were putting up your business, you formed your vision and mission. If there is no vision, the responsibility falls on the leadership. Moreover, if the vision is not aligned with the corporation values, it will also create confusion.
Your business plan should contain detailed strategic forecast over the next three to five years. Raising, deploying and managing capital is the ultimate responsibility of leadership. You know the amount of capital required to run your business. Sadly, a lack of capital is the most socially acceptable reason for business failure. But if the management knows how to manage properly the capital, your business will never go bankrupt.
Time is your best friend when it comes to business. If the management team is not getting the job done, it’s not a management problem; it’s the fault of executive leadership.
Your sales are the life of your business. Strategy, pricing, positioning, branding, distribution and all other metrics related to sales all rest with executive leadership. It is the responsibility a good leader to monitor properly the sales of his business.
The list can go on but these are just some reasons why poor leadership will bankrupt a business. Be a responsible leader and your business will succeed.