Small Business Planning, Strategy
Check out https://powerbrandingsecrets.quora.com/Why-Most-Small-Businesses-Fail
Breaks my heart.
According to Bloomberg, 8 out of 10 entrepreneurs who start businesses fail within the first 18 months. 80% crash and burn.
But why? What can we learn from the colossal amount of failure with small business that we can apply to our own business aspirations?
“By failing to prepare, you are preparing to fail.” – Ben Franklin
Planning To Fail
Most business professionals do not fail to plan. But if they do not have a plan, this is what they are condemning themselves to.
Challenge: Ask any struggling business person if you can see their written business and/or marketing plan. 99% of the time, they will be unable to show you one, as they do not possess one.
Top Reasons Why Businesses Fail
You can’t pay your bills. When you run out of cash your business has failed. You can make profit predictions all day long, but the only thing that helps you pay your bills is cash. If you ever do business with large companies, you will find that many of them are slow to pay. I mean it’s not unusual for a large company to take 4-6 months to pay. They are masters at controlling their cash flow. Learn from them.
You are offering something people are not willing to pay for. This one is easy, but so many miss it. Especially, those who end up creating a product or build software without confirming with the market that there is a demand.
Failing to attract paying customers in a cost effective way. You might have a product people are willing to pay for, but you can’t figure out a way to market it in a cost effective way. If it costs you more money to get a new customer than you can afford you don’t have a business.
You don’t have the skills to manage your business and you are not willing to learn. No one is a born entrepreneur. Entrepreneurs who succeed are fast learners. Learn or your business will fail.
Unable to build a winning team. When you start out, there is a good chance that you have to do everything, but you will only build a business if you can build a team around you.
Unable to create systems. If you look at a successful business, it runs on systems. It doesn’t rely on an all knowing business founder. There are systems within the business that enable the company to scale and grow.
Complete Planning Is The Antitoxin To Stagnation & Failure
In the majority of cases, we can unearth a lack of complete planning is each case of failure above. Lack of new sales, incompetent staff, disorganization and other toxic factors to any business can be found to have a lack of complete planning before the failure occurred.
Failure is a symptom, not the problem itself. The cure is a consistent effort to develop, implement, and reiterate one’s complete planning to all aspects of business.
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