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Recently, there have been so-called capital chain breaks and bosses running news all over the country. In fact, in the market economy environment, the survival of the fittest is normal. The so-called capital chain break is only a phenomenon, it is not the actual root cause of corporate failure. If a company has strong market expansion capabilities, high brand reputation and high quality, strong corporate profitability, and enterprise management in place, even if there is financial shortage due to market expansion needs, it will not go bankrupt. The capital chain breaks are caused by the following reasons: First, the blind investment expansion of enterprises, lack of market analysis and risk control capabilities, lack of follow-up of enterprise management talents, lack of product quality control, and lack of market expansion In the end, the company was in trouble and the capital chain was broken. The second is to bid for large-scale projects or other projects. Due to the vicious competition in the market, enterprises cannot get out of the vortex gravity that wins at a low price. As a result, the products of the company are shoddy, the quality is not guaranteed, the quality is problematic, and ultimately the funds cannot be obtained. Normally returned, the funds broke. Third, financial risks have not been assessed and controlled in a timely manner, which has led to difficulties. At present, the upstream and downstream enterprises in the domestic market generally adopt monthly and quarterly settlements, and even have a semi-annual settlement and annual settlement. If the enterprise does not timely control the financial risks, the customer’s operating status is not timely grasped, blindly shipped and shipped, In pursuit of market share and sales increase, the result will be implicated in the bankruptcy of customers. Once the company is implicated more than the highest risk alert of the company, there will be a multi-bone effect, which will eventually lead to the collapse of the capital chain and collapse. . There is also a weak corporate management capability, weak market product expansion, and successive years of losses, which eventually led to the collapse of funds. Regardless of the above reasons, as a decision maker of a company, especially a small and medium-sized enterprise manager, we must first control the financial risk in a timely manner, predict and evaluate the customer's ability to pay, and not blindly accept orders; Conduct adequate analysis and forecasting, evaluate whether the capabilities of people and property needed for expansion are matched, estimate the market demand brought about by the expansion, and achieve a three-dimensional analysis at the strategic and tactical levels, and not blindly invest in capital expansion. Brainstorming management; pay attention to the quality of products, improve the cost performance under the premise of quality first, instead of sacrificing quality, blindly taking orders, and entering the price war vortex.