For medium-sized enterprises (with headcount between 50 and 250 employees), the organizational structure is more complicated and the company is not necessarily managed by the owner. The company is at danger when the appointed management does not possess the appropriate knowledge and either not aware that this lack of expertise or are not willing to seek advice, for example for fear of losing their jobs. For the above two scenarios if management is not able to identify problems and threats when they occur, then they will not be able to face them and to think the possible remedial actions which they could take; If it does not face up to these issues promptly, it risks being overwhelmed by them. The final result of poor management is that the company is not efficiently or effectively managed. The SME is not in a position to let such a situation to continue. 2.8.1.2 Insufficient Capital A common serious mistake for a number of failed businesses is having insufficient operating funds. Business owners miscalculate how much money is needed and they are forced to close before they even have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales. It is very important to ascertain how much money your business will require; not only the costs of starting, but the costs of continuing in business. It is important to take into consideration that many businesses take a year or two to get going. This means one will need enough funds to cover all costs until sales can eventually pay
For medium-sized enterprises (with headcount between 50 and 250 employees), the organizational structure is more complicated and the company is not necessarily managed by the owner. The company is at danger when the appointed management does not possess the appropriate knowledge and either not aware that this lack of expertise or are not willing to seek advice, for example for fear of losing their jobs. For the above two scenarios if management is not able to identify problems and threats when they occur, then they will not be able to face them and to think the possible remedial actions which they could take; If it does not face up to these issues promptly, it risks being overwhelmed by them. The final result of poor management is that the company is not efficiently or effectively managed. The SME is not in a position to let such a situation to continue. 2.8.1.2 Insufficient Capital A common serious mistake for a number of failed businesses is having insufficient operating funds. Business owners miscalculate how much money is needed and they are forced to close before they even have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales. It is very important to ascertain how much money your business will require; not only the costs of starting, but the costs of continuing in business. It is important to take into consideration that many businesses take a year or two to get going. This means one will need enough funds to cover all costs until sales can eventually pay
Dissertation-HASNU_MAKAME-11-11-2014.docx