|
> Creating Successful Small Businesses > Creating Successful Small Businesses Blog > Articles > Seven Reasons Businesses Fail
Seven Reasons Businesses FailSeven Reasons Businesses Fail
Unfortunately, in this economy we've seen a number of businesses fail. It's a terrible thing. This article may seem simplistic, but there are seven areas that require every business's close attention. These areas need to be a part of the work that the business does on a daily basis. By area, here are some of the key questions that I ask every client. As you ask these questions of yourself, look for areas that you may not have given attention to for a while. It is very possible that the current view of that area may be different from the last time you analyzed it.
1) Money Being vague about any aspect of money coming in or out of your business can be fatal.
Do you know your fixed and variable expenses? Do you know your reserves? Do you have a solid monthly budget? Do you have profit projections for the week? Month? Year? Do you know all of your numbers/ratios? Are you being as profitable as you can be? Are there any areas where you can tighten up your expenses? Are your decisions made with the appropriate financial consideration?
2) Customers If your business does not revolve around your customers it will likely stop revolving at all and cease to exist.
Are your customers at the core of every business decision? Are you providing what they want? What they need? Are you making it easy for them to do business with you? How well do you know them? Do you know why they're doing business with you? Are there ways to enhance the relationship?
3) Marketing Having a detailed strategy about how you will market this business is essential. Also, making sure that you're consistently marketing is key.
How are you marketing your business? How do others in your type of business market themselves? What are the results of your marketing efforts? How do you know that your marketing is effective? What new forms of marketing are worth looking at for your business?
4) The Next Product Businesses that thrive do so by continuing to bring new products and services to their market. Keep selling exactly what you had a year ago may be the downfall of your business.
What will be the next product you bring out in your business? What will be the next type of product? Is there a new service you could bring to the market along with your current offerings? How many future products do you have "in the desk drawer"?
5) Your Own Process Making sure that your business is efficient in every way is essential to keeping the business profitable and customer oriented.
Are your procedures and methods correct? Is it the best possible way you can run your business? Are all of your employees on board with their role in the organization? Is everything handled efficiently?
6) Education/Self Development Business, products, and customers needs change very, very quickly these days. If you're not on top of everything that applies to your business, you're about to be left in the dust.
What are you doing to expand your knowledge of your business and industry? Are you constantly training? Learning? Growing? Do you keep in touch with the "leading edge" of your industry? Can you speak about the future of your business, and how you are working to make it a part of your current work?
7) The Long View Knowing where you're going, and why you're going there is essential to what you do every day. That clear picture of what your business will look like in the future shapes and molds our daily actions. Taking your eye off of that is deadly.
Have you set a picture in your mind of what your business will look like 5 years out? Are you doing everything you can to make that a reality now? Are your daily actions in line with making this business what it needs to be to fulfill your vision of it?
I hope that some of these questions can help to propel you forward in the ongoing creation of your business. Till next time....
Jerry
All Out Coaching LLC
Taking Your Business to the Next Level!
© 2003 Jerry Wistrom and All Out Coaching, LLC
All rights reserved.
|
|
|
