According to an Australian Securities and Investments Commission (ASIC) report, 44% of businesses fail because of poor strategic management. A further 40% suffered inadequate cash flow or high expenses and 33% incurred trading losses.
So let’s read between the lines…
Thousands of small business owners are entrepreneurs at heart. The very nature of being entrepreneurial is a willingness to take a risk and have a go. Seriously, that deserves respect. But let’s not go overboard with praise yet. You see, there’s a fine line between bravery and a silly decision and often that line is education.
I come across scores of business owners every week. They’ve all got a headful of hopes and dreams but too few have plans and goals. Plans and goals are the levellers business owners need to test if their hopes and dreams are viable. They force business owners to ask the hard questions surrounding cash flow, pricing structures, marketing strategies, suppliers, capital investment, profits, tax structures, revenue streams, quality control, lifestyle, taxation compliance, labour costs and more. The problem is, very few entrepreneurs have the knowledge to even ask these questions let alone find the answers so sound business decisions may be based on them. Again, education is the key.
There are several facets of education that many business owners know they lack. According to our recent survey of members, how to close a sale, marketing, social media, scaling a business and cash flow are high on the list of subjects that business owners recognise they require more knowledge in. This recognition is the first step to becoming successful. A better understanding of the intricacies of these needs to be gained so entrepreneurs can make informed decisions about what they can take on themselves and which are to be outsourced. Yes, even if you outsource your bookkeeping, you still need to be able to assess the information your bookkeeper gives you. After all, it’s your money!
So the first thing education should teach you is which aspects of your business are to be done by you and which you’ll contract out. Now, I know what you’re thinking – “But I can’t afford to contract out anything!”
Well, here’s a little tip that comes from the bottom of my heart. Don’t go into business if you can’t afford to contract out some work. Seriously, you’ll burn out in a short period of time because you’re overwhelmed, disillusioned and don’t have two cents to rub together since you don’t have time to attract customers, service them properly or keep on top of all those other requirements mentioned above. Outsourcing is a must for small business owners and education is required to help you select which elements are to be outsourced and which you’ll do yourself.
I’m passed being stunned by it now, because I see it too frequently, but yet another woman I know has just tossed in the towel on her business because of overwhelm and insufficient income. My heart breaks when I hear these stories. If only she’d been out there meeting new customers and building relationships instead of sitting behind a computer balancing a spreadsheet.
Learn to earn is the catchcry. So build a business by educating yourself, outsourcing, establishing efficient processes and providing excellent customer service at great value. It’s a proven formula that’s absolutely essential if you want to create a saleable asset when the time is right.
Frustrated with so many businesses failing, and with a mantra to unlock the potential for women in business, they are determined to do something that will make a difference. It had to be practical and fun. So the Business Solutions Summit was born, promising a full one-day event supercharged with solution focussed workshops.
When: Melbourne Saturday 21st July
Business in Heels are so very proud to begin the day with keynote Naomi Simson who’s focus will be on overcoming barriers to success.
Every participant will then participate in three pre-selected workshops each focused on a problem that is holding back their business. In small intimate groups with expert facilitators, participants will focus on their business and their problems. The outcome will be a bag load of practical tools and ideas they can implement as well as leaving with connections to a cohort of like-minded business owners facing similar challenges.
Throughout the day there will be many opportunities to connect with others, including the expert facilitators and exhibitors while exploring the expo. Naturally the day ends with a Signature Business in Heels event complete with an expert panel discussing how they too overcame their barriers.
It will be a day to remember!
Source Link – https://www.thebusinesswomanmedia.com/avoid-failed-business-statistic/