The Bank of England has cut interest rates to a new all-time low of 0.5% and said it was now boosting the money supply to help revive the economy.

Interest rates have now been reduced six times since October, and the latest half a percentage point cut from January’s 1% had been expected.

The Bank said it would expand the amount of money in the system by £75bn in an attempt to boost bank lending. The idea is that if the amount of money in the system is boosted, commercial banks will find it easier to lend.

Quantitative easing is sometimes incorrectly referred to as printing money, but the Bank will not expand the supply of money by making new banknotes. Instead, it will buy assets - such as government securities (gilts) and corporate bonds. But as it will not borrow to fund the purchases, it is creating new money. Though this latest cut should help support business and consumer confidence, it it may not have a dramatic impact on the cost or availability of credit.

Here are ten key reasons for business failure:

• Inferior strategy or business model- Are you pushing water uphill?

• Weak leadership and management- Could you or your top team be the problem?

• Lack of forward business planning- To get to your destination, you normally need a map!

• Insufficient demand for goods or services- Are your products or services fit for purpose? Are your sales team letting you down?

• Difficult or unprofitable customers- Low margins create losses. Bad debts can be fatal.

• Unreliable or uncompetitive suppliers- The best way to hand business to your competition.

• Unnecessary or badly managed staff- What do you need to get the job done?

• High fixed overheads- Sales are down, but those costs keep on rolling.

• Poor risk management- Watch out for that incoming missile!

And last but not least….

• Cashflow problems - talk to your customers and suppliers and offer incentives of paying early.