The most common problems that lead to the insolvency of a company include:

1. Lack of control over cash flow – Unforeseen expenses or inadequate management of income can dry up a firm’s resources. Negative example: a company making major investments without cash reserves. Positive example: Firms that maintain a clear budget and contingency reserves can avoid cash crises.

1. Increasing debt – If a company accumulates too much debt and fails to manage it, the risk of insolvency increases. Counteraction: debt restructuring through negotiations with creditors.
2. Market changes – Firms that do not adapt to new market conditions risk insolvency. Negative example: a traditional manufacturing firm that ignores digitization. Positive example: companies that invest in innovation and adapt to market demands.
3. Lack of strategic planning – Without a robust business plan, many companies miss opportunities and run into financial difficulties.
4. Problems in managing relationships with customers and suppliers – Unclear contracts or problems with suppliers can destabilize the business. Countering: proactive management of business relationships.

To avoid insolvency, companies must implement rigorous financial planning, be adaptable and seek legal solutions in a timely manner.

For rigorous financial planning, some basic criteria must be met:

1. Realistic estimates – Financial projections must be based on concrete data and analysis, without underestimating the risks.
2. Constant cash flow monitoring – Careful management of financial inflows and outflows to avoid bottlenecks.
3. Financial reserve planning – Creating an emergency fund for unforeseen expenses.
4. Reducing unnecessary costs – Optimizing operational expenses.
5. Diversification of income sources – Avoiding dependence on a single revenue stream or client.

These elements contribute to long-term financial stability and success.