These are 11 Common business Mistakes made by people. What mistakes lead to business failure? Here is a list of common mistakes in business to avoid with examples. Why do entrepreneurs fail and how can they know what corporate mistakes people make?
1. Over trading and over leveraging:
Success creates confidence, and confidence makes us feel that I am right, and I will be right in the future too. When there are good days, many businesses forget to create good reserves for rainy days. In fact, they go for expansion without projecting a feasible cash flow. They borrow and borrow again to move further. Interest is a 24x7 charge. What is an ideal mix of capital and borrowed funds is a very important question and each entity has to decide it individually, depending upon their circumstances.
