Main causes of sudden loss in an income

Main causes of sudden loss in an income

An income is a very important thing when we are to define success and prosperity in our lives. In fact to excel financially you must be skilled to grow your income. So this time round I have to you main causes of loss of an income as it has contributed greatly to the current great number of unsuccessful people in the world but don’t worry I have listed as well the solutions to combat this problem to have many people succeed in life.

  1. Abrupt loss of job. This is normal if you are an employee because there are several factors resulting from that this include among others company’s income shrinking and levels of productivity among employees.

Solution.

Mind on building passive income (from your salary saving) i.e. income generated from stable investments such as real estate and mutual fund.

All successful people have this secrete in common because they know that all other incomes are not stable (they can go any time).

You as well put another source of income like business to supplement job income to easily raise money to set up investments that brings in passive income. I advise employees to do part time business but not part time jobs because with a business you own it, it grows with you and you can pass it on to your children unlike a job.

  1. Loans not properly planned for. Some people take loans to finance liabilities (things that remove money from our pockets or don’t grow in value) such as wedding party, personal car etc. without first planning properly how to pay it back. Most people of this category end up their good
    loss
    Loss is a lesson to think again and act differently.

    sources of income sold by the lenders.

Solution financially intelligent people don’t find loans to liabilities rather they get loans to finance assets (things that bring money into your pocket or grow in value) such business, land, contracts etc. these assets generate s

  1. Some employees have let down many business which where good source of income to owners by removing money and other valuable products from the business and finally letting it collapse.

Solution.

Please end ever to do the following to avoid fraud in your venture

i) Love your employees.

ii) Pay them effectively.

iii) Understand each other.

iv)Always be strict on finances and employ better methods of financial control.

v) Let them understand the mission and vision of your company/business and impart in them a sprit to love the company.

vi) Always employ better systems and improve on managerial skills to better run your company.                  If the above points are taken seriously and properly implemented you will reduce if not eliminate fraud within your company.

4. Copy and paste method of doing business. Some ventures fail because owners had no plan and passion for them, they only see their fellows doing them and copy exact thing and do it somewhere else or even near the original one.

Solution. Always do what you are passionate about and with the project plan first.

  1. Taking a wrong business line. as the world is ever changing there is and there will always be shift in business rends and it may happen that you are taking a line infertile, this one alone can lead to your loss in income because people’s desires are shifting from one line to another.

Solution, be innovative

  1. Dealing in illegal business. Some people are doing businesses that are allowed to operate in there areas of operation or even worldwide such as sell of marijuana, ivory, narcotic drugs etc. if you own such a business chances are high that you most likely to loose your income your product may at any time be impounded by authorities.

Solution It’s true that such kind of businesses are very profitable but the risks are also to high that will even lead to your imprisonment where the biggest resource ie you is in custody. So, I advice you to stop his business but if you can’t afford that I again advice you to risk less by investing your profits in another legal business and grow it bigger as you get out of the the other one.

  1. Calamity, most people loss their income in calamities like fire, earth quack, heavy storm etc. in most cases these strongly affect the business with almost everything destroyed.

Solution; always make research of the area you to establish your venture and have crew on likely calamities to occur and take insurance cover against them. If you are along the hill please insure your venture against hailstorm, if you use electricity insure your venture against fire and so on.

  1. Failure to pay taxes, if you are a kind of person who doesn’t pay taxes I want to assure you that paying tax is good and healthy for your business.

Remember also to love your country like your family  and its doing a service to you like building infrastructure e.g. roads, railways, electricity etc that you are using also safeguarding the nation such that you and your business stays and work effectively and many more. So refusing to pay tax is like doing a disservice to yourself. Remember even by not doing your resiponsibility to pay tax the authourity have the power to impound your goods or penerise you which will be a big loss to you.

Solution. Be a responsible citizen and pay your taxes timely.

  1. Lack of research and innovation, people always keep on wanting better things, if you are kind of a person who doesn’t researches about customer needs and keep improving your product/services depending on research results you will one time find a good competitor with ever improving product/service and it not take you long to collapse away from the market if you don’t style up.

Solution; always study your customers and be innovative enough to provide products/services that suit their desires.

  1. Lack of discipline / little customer care, human being where created to be cared about let it be a man, woman, child or an elderly. This a need  that cuts across human race and beyond, my dear reader of this post where there is a need there is an opportunity so take use of this need seriously and provide care to thousands of people that will make you great and a highly successful person.

Solution; care about customers / people that come to you that’s when they will return back happy and feel loyal to you.

Other causes;

  1. Lack of enough capital.
  2. Poor systems in running a venture.
  3. Poor advisors
  4. Dealing in fake products/services.
  5. Heavy taxation
  6. Lack of enough knowledge and skilled manpower.
  7. Exploited resources.
  8. Poor management.

By new action to prosperity.

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