PREVENT BUSINESS FAILURE- ITS A PERFECT TIME TO CHECK THE HEALTH OF YOUR BUSINESS.
Are you happy just participating, going through the motions or do you want to be at the top enjoying all the opportunities its brings and absolutely enjoying the ride of your business?
Not every athlete gets to the top, but there’s many things businesses can do to give themselves the best chance at gold just like an athlete. Practice does not make perfect, but perfect practice makes for perfect performance.
In the start-up stage of a business the goal is simple- staying alive!
Trying to harvest capital, produce a quality service or product and finding loyal customers should be the focus. Statistics say that nearly half of the start-up businesses will close in the first year. Know exactly what you are currently doing and how that is helping to achieve what you set out to achieve.
Setting out into the entrepreneurial journey can be exciting and overwhelming and owners can be too wrapped up in their own vision. Don’t let a small problem turn into a big problem just by overlooking it. The three top reasons for start-ups to fail are:
No market need- the biggest reason businesses crash early is that there is no room or need in the market for the product.
Money dries up- this can be triggered if they don’t plan for how long it takes cash to start coming in, they don’t budget properly or their burn rate is too high.
Not the right team- pressures and stress can get to an owner and cause them to burn out. Surround yourself with great employees, peers and advisors that work well together and complement each other.
As you progress your business cash flow can and should project. Your focus is to cover expenses and produce marginal profit. This is where you need to train your ‘business’ body like an athlete.
Too many businesses get caught in this phase.
Having correct reports is key to measuring your performance and implementing the right tools and systems that attack your weaknesses and enhances your strengths. Read our article Are Your Profit & Loss Numbers Really Correct? to make sure you are getting a true reflection. Also I know It’s been said many times before but setting goals is the most important step to a thriving business. Make sure your goals are Specific, Measurable, Achievable, Relevant and bound by Time.
This blog provides the base information you need to push you in the right direction. Our goal for you after reading this is getting active and sitting down with your team to check where your business is at and where you want it to be. We are here with our knowledge and expertise, to find out the strategies that you need to implement into your business to get it to where you want. Our team at Peer Wealth would be delighted to work to with you in all aspects of finance to assess your current situation and discuss the direction and actions needed to take to get you to gold. Come in and visit us at 202B East Esplanade Manly NSW.