1. An info compilation from failing
businesses in Malaysia 2014.

2. • 1. No growth plan
Just as you are building a house without a blueprint, a business cannot
survive and grow without a practical, well- researched plan. One might
starts a business easily but how to get and maintain its clients, that’s
technical.
• 2. Wrong business, wrong location
You may have opened a retail store, only to find out long working hours
which don’t necessarily equate to a profit and wages or you had choose a
services business which you are good in technically but not administrative.
You had rented a shop doing groceries but found out it’s an isolated town!
Although it’s cheap but totally “human-less!”

3. • 3. Lack of technical skills
The world is moving too fast with new IT applications! As for your clients,
they do look to you as an expert and what if you are not constantly
upgrade? Learning new technical terms might be creating frustration at
times.
• 4. Lack of sales and marketing skills
Selling is not everyone’s strongest point as marketing is a weak area for
most of small businesses. It might be disappointed when you customers
rejects your proposal even your product is “cool”.

4. • 5. Lack of financial skills
You are the CEO of your business where you will need to learn about
accounting, financial figures and cash flow- not everyone’s favorite subject.
However, outsourcing to personal accountant might cover up these field.
• 6. Undefined financial resources
Your are out of cash flow to run your business due to over credit to your
clients and your banker rejected your funding. It is because your cash flow
forecast is not in order, so do your accounting’s profit and loss.

5. • 7. Lack of market research
You are not spending enough time to learn up or updating the
demographics of their market- where & who and if there is a market for
their business. Selling snow jacket during summer might be a challenging
task.
• 8. Investment in trendy businesses
There are those who jump on the bandwagon of trendy businesses not
without researching their potential longevity. Your ROI should be 5 years but
the trendy business ends up by 1 year where you could not recover back the
investment in time.

6. • 9. Over projection of sales & under projection of marketing
costs
Optimistic figures may look good on paper but who are you fooling? Be
practical , budget and know your break-even point which is how much sales
required to meet all monthly expenses. Spend a minimum of 10% of
marketing from projected sales is acceptable.
• 10. Professionals are not consulted
Once their business is operational, business owners seldom allocate budgets
to regularly meet up accountant, business consultant or lawyers. Accountants
are trained in recognizing financial problem while lawyers are necessary to
review contracts and agreements. If you are facing these issues, get them to
help you!

7. • The slide is solely for info blogging purpose, no re-printing
without permission and it is a intellectual property of:
CW Management and Consultancy Services
www.cwca.com.my
The writer can be contacted through:
info@cwca.com.my
or Whatapps:
016-4225602