Business failure

Scenario

You have set up a business of your own either a restaurant or a clothes shop

What issues are you likely to face?

Why are you more likely to fail than an established business?

Business failure

Businesses are not always successful. Many new businesses fail within their first one or two years.

Even long established businesses fail

Case study page 41

Pick one of the four case studies.

Working in small groups, identify the likely reasons for failure of your chosen business.

Case study page 41

1time air failed because...

Zambezi air failed because...

Pacific Blue failed because...

Hungarian airlines failed because...

Main activity...

Common causes of business failure

Poor planningPoor cash flowPoor management skillsLack of objectivesFailure to invest in new technologiesLack of financePoor choice of locationPoor marketingStrong competition

Homework

Find an example of a business that has failed.

Tell me:

Its nameIts core business activitiesReasons for failureIf possible, one suggest of how they could have

survived.