FAILURE IS NOT AN OPTION!

According to the US Small Business Association 2/3 small businesses are out of business within 2 years and from those remaining only 44% survive the next 2! This is a dire statistic for those considering starting their own company and perhaps a necessary reminder to the uninitiated or uncommitted.

In some cases and for some people betting your entire investment on one hand of cards might statistically give you a better chance of getting ahead. But, you're not going to make the same mistakes that the majority of small business owners make, are you?

What are those mistakes?

And what are the keys that give the top 14% who make it the winning edge?

Mistakes to Avoid

While there are a number of mistakes that can cost you your business some are easier to avoid than others. Natural disasters and, to some degree, economic factors may be beyond your ability to avoid and apart from insurance there may be no point in preparing contingency plans for them. So what are the pitfalls that you can avoid?

1. Lack of vision, goals and planning

The essential building blocks for your business must be a vision or mission and an accompanying set of goals and plans. "Plan your work, then work your plan" is a popular saying amongst successful business managers. These winning leaders know that prior consideration of the business and its environment is the key to future success. This doesn't have to be complex or even detailed to be successful. You could have a living, flexible plan that allows for your personal preference and style. This is okay, provided something is prepared before you start out and written down so that you can refer to it and measure progress and actions against it. Then schedule regular reviews of your goals and actual performance.

2. Insufficient cash flow

Without cash your business will grind to a crashing halt overnight and you'll find yourself and your business on the wrong side of the statistics and in the back of the unemployment queue. You simply must have money. That is not to say that making a profit is necessary, particularly in the first few years as your business establishes itself, but the cash to meet monthly expenses is vital. Failing here is probably an extension of a failure in your planning and review (see above), but equally it could be a result of simply failing to collect the money owed to you or to be too lenient on customers or staff (fraud is a very big problem plan for it!)

3.

• 1
• 2
• 3
• next page >>

---

Add your voice

Know something about Common mistakes made by small business owners?
We want to hear your view. Write now!