Analyze Reasons of Middle and Small-sized Chicago Screw Factory Go out of Business  Easily

source：    Author：Kira    views：142    Release time：2015-05-28

There are many reasons lead middle and small-sized Chicago screw factory go out of business easily. Today I would like to simply analyze about these topics.

I think these factories go out of business mainly in following reasons:

1. Middle and small-sized Chicago screw factory itself are in low capitals and funds. When accept an order from some large companies which difficult in collection cycle, add with monthly account and default in the payment, in this situation Chicago screw factory’s capital chain break off momentarily. And when capital chain break off, the material cost for screw wires, mould and other materials will unable to keep pace with, even cannot pay off  employee salary and workshop rent. In these worst cases, factory can easily out of business.

2. Numbers of these screw factories are found by young entrepreneurs, inadequate technology is an essential defect which regulate business development. Most of these young founders earn a little money and want to find some projects for running, then they chose hardwires and screws business. When once working on this business and lack of core competitiveness, which become a main reason making bankrupt. And manage and decision-making ability of China Chicago screw manufacturer is insufficient, which is an internal cause lead to close down.

3. Middle and small-sized Chicago screw factory sometimes meet economic crisis or depression, be affected by these situation easily, and bosses’ risk resisting capabilities is weaker than they think, the result is they cannot bear the impact of a economic crisis, orders still reducing, staffs stand idly by. And have no choice but to declare bankrupt.

Of cause, the reasons of many Middle and small-sized Chicago screw factories go out of business are more than the above three, there are also the other internal and external reasons. In serious economic situation there are surely some screw factories go into liquidation. It is normal and a law of survival of the fittest in marketplace. So by whatever means Chicago screw factory can stand up to the pressure worth bosses thinking about.