Reasons for Business Bankrupcy

[CybFun.com]

I have a gameshop myself.

In our business, there are two major reasons for bankrupcy: Rent and overstock.

What else would be the reason for retail bankrupcy?

http://www.cybfun.com/2009/02/two-re...bankrupcy.html

[ZingerIntl]

No more money!

[terryxu]

No more money!

quite right
I ever know a big company, which have big stock, but have no enough money to pay supplier. and then bankrupt.
His competitor bought it.

[bestill]

No customers!

[byzantium]

It seems that when a business is not making money, the owner will go deep into debt trying to keep it afloat, when what he should do is cut it loose. I've heard tons of stories about businesses that once made money but no longer do, only the owner is now wedded to his business and wants to flog the dead horse until doomsday trying to make it live again. Thus all the debt. The debt piles up and the owner eventually goes bankrupt. Now he not only has lots of debt to pay back, but no income to make payments with. He ends up in bankruptcy court because of this. If he had just jettisoned the business when it stopped making money, he wouldn't be in so much debt. So the most common cause of business bankruptcy is lack of profits + emotional attachment causing irrational indebtedness.

[mthomas]

A lot of upfront costs, including marketing and not enough (or no) sales. You need to do a lot of different testing in the beginning to see what marketing techniques work. During this time, you aren't really earning any revenue, but you are continuing to spend on advertising to test, so you are especially vulnerable to bankruptcy.

[Shadesz]

prolonged negative cashflow

[CybFun.com]

I just mentioned the major two spending.

http://www.cybfun.com/2009/02/two-re...bankrupcy.html

[pboychuk]

Starting a speculative business without cash cows in place... Hopefully I will never have to think about bankrupcy if i play this game right

[CybFun.com]

There are few spots to suck up money. You need to control those.