I mean – who goes into a business venture anticipating that they are going to fail? No one does that! Yet without attention to good planning and a solid business plan, the chances of failure are significantly increased. And, in case you hadn’t noticed, the odds are stacked against you right from the start!
A recent online
search for “small business success rates in Canada” generated a number of
statistics including the following statement: “Business failure statistics show that about 96 percent of small businesses (1–99 employees) that enter the
marketplace survive for one full year, 85
percent survive for three years and 70
percent survive for five years (Key Small Business Statistics).“
Knowing this, are
there some things you could do to improve
your chances of business survival? As we work with our clients,
particularly at the start-up or growing stages of their business ventures,
we’ve seen where the following “Survival
Tips” from The Canada Business
Network, can help entrepreneurs avoid some of the pitfalls that lead to
business failure. Please give these some consideration, and let us know if
you’d like to review how these can be enhanced or applied to your business
planning!
- Develop a good marketing and business plan that takes into account customer needs, competition, pricing and promotional strategies.
- Have a good working knowledge of business law or hire a lawyer.
- Understand your business finances, such as cash flow and handling credit.
- Keep a good inventory of your products or services and your existing customers.
- Supervise, train and motivate your employees.
- Make sure you have the experience, expertise and talent to run your business.
- Plan every part of your business from start to finish.
- Know your market and define how much of it you will be able to capture.
- Make sure you are offering a product that is unique and competitive or at a lower cost than that of your competitors.
- Don't under-estimate your expenses and over-estimate your revenue.
- Make sure you have some cash reserves or a line of credit to help you get through slow periods.
So … what’s the secret to business success?
In two simple words: “Avoid Failure!”
Business Success usually
takes a good length of time before it’s achieved. Over night successes are very
rare indeed. Some may say that success has more to do with good luck, and there
may be some luck that’s been involved along the way. However, I’ve also found
that the harder someone works at building their business, the luckier they
become! Momentum begins to build and things start falling into place. So keep
working at your business! Work hard, and also, work SMART! And when that day
comes for your success, by all means, celebrate and enjoy the fruits of your
labour! We’d also encourage you to remember those who helped you reach your
goals, and find meaningful ways to “give back” to those “good causes” that are
important to you and those around you.
What's been your experience?
Feel
free to add your comments and we'd very much appreciate
if
you would share this post with those in your circle of contacts.
QUESTION:
Are
you looking at writing your BUSINESS PLAN but finding that to be a challenge?
Over the years we’ve
found that there is great value for an entrepreneur to put together their own
business plan, yet we also recognize that writing one can be a daunting task!
Perhaps you’ve experienced some of the challenges faced in writing a business
plan. We'll work with you and assist in the gathering of information that
you'll need to have in your business plan to effectively describe your business
opportunity. This service takes a consultative approach to gather information
from you and works with you to craft a business plan that's tailored to your
needs.
For
more information see:
Option
4 - “PVS - Business Plan Writing”
It's
listed on our Website Registration page:
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