Seven common reasons why businesses fail: 1. Not understanding the customer due to poor market research.
2. Not having enough fi nance to get started. 3. Poor cash fl ow management means there is not enough fi nance to stay in business.
4. Failure to keep proper fi nancial records and accounts. 5. Getting the marketing mix wrong. 6. Employing staff with the wrong skills. 7. Not having a well-thought-out business plan.
Pair work
Work in pairs or small groups to prepare a business plan by following these steps: 1. Imagine a business that you would like to set up. It can be any type of enterprise, for profi t or not-for-profi t, as long as it is legal.
2. Prepare a simple business plan for your imaginary business by following the format of the Chocolate Delight business plan.
3. In class, read one another’s business plans and have a vote on which business will be a success, based on the information in the business plan.
