According to the authentic and true information much better than the lies of Hong Kong government and property owners told, Hong Kong has 90% of its small business are working for nothing. Many of them are already gone bankrupt awaiting liquidation and selling all assets by court,auction by the banks, and quite a lot of them are keep on losing money on monthly basis, say from 100k dollars or more but are still advertising for untrue information to attract a new buyer to fall into the business trap. Many experienced Chinese seniors say: ” Chop head Business is far better than business keep losing money”. As what I learned in Hong Kong from my father who was an onwer of three different kinds of small business in Hong Kong. He finally went bankrupt about ten years ago and committed *******. He owned a lot of monies from the banks, friends and one loan shark. He said the rent went up three times within 3 years for the same business outlet in Kowloon.Hong Kong should have rent control laws.
Originally posted 2009-08-19 01:15:26.
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Small businesses are being devoured by larger corporations who can market a better product to more consumers at a lower price. That’s life.
poor business planning, if yu plan for the unexpencted and then have a good buffer you should be ok
Poor cash flow is the main reason for failure of any company large or small. Cash flow is the red line of survival of a company. If a company has good net profit and good ROI, but poor cash flow … nothing else matters but cash flow. Companies get deeper and deeper into debt trying to manage cash flow and eventually the bubble bursts … they can’t pay their obligations and go bankrupt.
New companies should plan and pay extra attention to cash flow so that they stay out of trouble. Debt should be used to grow the company, not to pay current liabilities.