When you're running a small business, the last thing you want to focus on is failure. But unless you are doing the right things within your business failure (or forever underperforming) is a real possibility.
There are many views about what a business owner should and shouldn't do to keep there business profitable and thriving (not just surviving) but as with most things there are a few that are key… at the core of success.
Here are some the three most commonly cited reasons for small businesses to under-perform and fail…
#1 Poor Management
Most small business experts cite poor management as the number one reason for entrepreneurial failure.
Business owners frequently lack relevant business and management expertise in areas such as finance, marketing, selling, and hiring and managing employees.
Unless they recognize and act upon what they don't do well by seeking help a business owner can and will face disaster.
Note: For a side by side comparison of Professional vs Entrepreneurial Management please email me at eleaman@oedglobal.org
#2 Insufficient Funds/Cash Flow
A frequent and more oft then not fatal mistake for small business owners is having insufficient operating funds.
Business owners habitually underestimate how much money is needed to found and run their enterprises and are often forced to close before they even have had a fair chance to succeed.
It is imperative to know how much money a business will require… not only the costs to begin (ALWAYS underestimated) , but the costs of running the business (ALWAYS more then it should cost).
Tools like budgets and accurate forecasts must be used and solid sources of funding must be found, cultivated and used.
#3 Lack of Planning
Anyone who has ever run a successful business knows consistent, careful, methodical, strategic and flexible planning is as important as hard work in being successful.
While business owners hate to hear this every business MUST have a business plan and the plan must be followed. It must be realistic and based on accurate, current information and educated projections for the future.
OK, that was the ‘bad news’… which is actually good news because these three things are so very easy to avoid or correct with the right help and advice.
This is where the Organization for Entrepreneurial Development and its Local business Assistance Program can come into play for start and existing enterprises.
As a non-profit corporation, the Organization for Entrepreneurial Development provides business support and outreach to the broad entrepreneurial community.
If you or a business owner you know are struggling with your business under-performing or even feel like you/they are teetering at the brink of failure, please use or forward this email and take advantage of OED’s Local Business Assistance Program. As business owners, entrepreneurs can take advantage, at no cost, of OED’s most popular outreach program, Local Business Assistance Program, just by visiting http://www.oedglobal.org/lbap.html
