The Leader in Quality Service Since 1992

"Helping Businesses

Help Themselves"

 Business Advisors

Services:  Analysis

Business Cycle

Key Business Issues

Why Businesses Fail

Analysis Process


EXCITEMENT new business coming in, profits good, strong cash flow, future bright.



CONCERN business stopped coming in, profits level, cash flow month by month, business flat lined, questionable future.  WHAT TO DO?



FRUSTRATION no business, profits drop off, zero cash flow, layoff employees.  BANKRUPTCY?


At what stage is your business today?

Where will your business be next month, next year, or 5 years from now?


A company that has been in business many years has probably accumulated a lot of "Business Habits."  These business habits often reflect the nature and personality of the executives at the top.  These methods may be in tune with the times...or they may be completely obsolete.



IBE has found that the key problem in most businesses is setting the organization along functional lines.  Very frequently bottlenecks are created because authority and responsibility are not placed where they properly belong.



There are two basic ways in which any business can increase its volume:  one is to sell more products or services to present customers;  the other is to seek out and sell products or services to more customers.



With very rare exceptions, the only reason for the operation of a business is the resulting net profit.   There is no prize for volume and there is no glory for size.

1.  Inadequate accounting records.

2.  Disregarding or misinterpreting financial records.

3.  Not controlling costs.

4.  Inviting fraud through poor internal control.

5.  Improper planning.

6.  Failing to sell aggressively.

7.  Insufficient working capital.

8.  Not carrying adequate insurance.

9.  Failing to adequately train employees.

10.  Not seeking advice or professional help when necessary.

This Year, 500,000 New Businesses will Start and 400,000 will FAIL.  Based on our 20 year experience  working with small and mid-sized businesses we have developed the following Top 10 List of Reasons Why Businesses Fail:

•  Study all elements of sales dollar

•  Analyze sales methods

•  Analyze direct and indirect labor expenses

•  Review budgets if any

•  Examine company policies

•  Check profit controls

•  Survey operations and methods

•  Inspect accounting and cost methods

•  Analyze overhead rates

•  Inspect production controls

•  Examine administrative methods and procedures

•  Review quality assurance systems

•  Review quality management

•  Review incentives

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