by Jenny Spinner

Created on: January 08, 2009

The problem with the 99% failure after just five years and an astonishing 70% failutre after just one year is because they do not know how to manage their business the right way! Many entrepeners think that just because they are the bosses now they don't have to work so hard and so fast like they did when they were just employees. It's all the other way round: You need to work at least one million times faster when you are a entrepeneur than when you are just a clerk. By the way, you only get paid what you really do, not what you thnk you are doing. Managing cash is very important as well, if you do not have about 50% of your monthly expenses in cash enough for one years you are in very serious trouble. Many well intentioned and intelligent consultants I have come across professionally believe that a great idea with a great marketing scheme and superior desire can make anyone successful. Do not believe in the people that tell you that the law of attraction works. How many times in your life you attracted a first prize? I bet it!

The success or failure of the majority of all small businesses has little or not at all to do with the desire, marketing scheme or the great idea that created the business, or even the people that work on it. It's all about pleasing the costumer. Would you ever buy a bad product or service? Neither will the costumer. While these three items must be present in every successful business, solid fundamental management principles will allow a small business to prosper and succeed. You also need a lot of software to manage all the business properly. How many times a day you saw an old man drawing all that complicated nubers? Every successful company, be it a small, medium or large business, uses the same set of management principals. No management means no good health for the company. The size of the business determines the individuals principals used and the sophistication of the principle. As an example, a small business normally has informal and perhaps even unwritten employee hiring guidelines. By focusing on the production you are focusing on your biggest success, much like a football player that focuses in the ball and in the score. A medium sized company has a legally approved, comprehensive employee manual with employee hiring guidelines as a separate section. Small companies with less than 100 employees should not need a special person just to hire people. A large global business has an entire department writing several employee manuals in several languages with employee hiring guidelines based upon legal and social issues in each country. You know that they hire more than 10 people a day and they do really need a lot of people to work on it! However, the common sense management principal that all companies should have a fair, consistent and applicable employment program must be used by every company. Don't neglect this last one.

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