5 Pitfalls that can destroy your company

May 23,2017

Don’t even bother picturing every event or factor that can destroy a company. There’s just too much to count. It is virtually impossible to list everything that could lead to a company’s downfall. However, there are five major pitfalls that every company must avoid if they want to stay afloat.

Insufficient Capital

No business can start or operate without enough capital. Businesses needs money, and a good share of it too. Startups usually struggle to find enough resources to start – be it when finding funding, attaining credit, pooling personal financial resources – all to make ends meet. For established companies, they usually suffer from insufficient capital when their spending starts to outweigh their revenue.

If a company fails to monitor their cash flow and expenses, or made several bad deals, it could lead to severe financial losses that will ultimately cause the company to go under.

Poor growth speed

Poor growth speed does not only mean not growing fast enough, it also means growing too fast. If you are too slow, you may miss several key opportunities that could have led to exponential growth in your company. You can also be overcome by similar businesses that start after you but were able to scale faster.

If you grow too fast, you risk having your company crushed by the pressures of extreme demand, insufficient resources, poorly trained manpower, and inconsistent customer experiences.

Competition woes

No matter how big or small your competition is, do not underestimate them. If played well, a small startup can crush even the biggest companies depending on their strategies to control the market. No matter how ingenious your innovation may be, remember that another competitor may release an innovation that can render yours obsolete, just as your innovation did to those that came before it.

Internal conflict

You could place every safeguard and countermeasure to protect your company against your competitor, but if you fail to keep a close watch at home, then you will ultimately fail. Internal strife can definitely kill your company from the inside. A company is similar to the human body – everything works together and with each other. Remember, a house against itself shall fall.


If your company depend on either a single talent, market condition, or fab to keep afloat, then you might want to take a step back and reevaluate your situation. Overdependence on one factor alone means that your company is built on sand. Once that foundation is gone, everything will collapse.


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