Every entrepreneur who has ever dreamed of setting up or forming their own business start up is fully conversant as to how tricky it can be. Statistics suggest that greater than fifty percent of small business start-ups will fail within the first twelve months and a total of ninety five percent will fail inside the first five years. Yet, that statistic remains constant year after year. Let’s discuss why that is.
Many newbie small business owners dive in and launch their businesses with nothing more than a “good” idea that they have in their heads. I am certainly not trying to stifle creativity but successful new business ventures become so because those who have the idea also recognise how to carry out or achieve their vision. They typically have a reliable business background and are not afraid to engage experts who have proven business skills and experience to help them be successful.
The all too frequent dilemma is that several businesses fall short because their business owners do not have the required business and management experience to take their dream to the next level, or to implement all facets of their business which are essential to run a successful business.
It’s not uncommon for business owners to inflate revenue and sales forecasts or to suppress their expected overhead figures to make their idea look profitable from the outset.
Another area is their unwillingness to admit that they cannot be proficient in all areas of business and they plough on regardless. Don’t assume you should or could do everything. There will undoubtedly be tasks that you can’t or should not carry out single-handedly. It’s alright to seek help once in a while.
Form filling and the associated mountains of rules and regulations to comply with is central in today’s business world. There are payroll, accounting and tax records to keep and sort; accounts receivables to organise and to collect; suppliers’ invoices to settle and so much more.
Of course, all you want to do is concentrate on the business of advertising what you offer and then delivering an exceptional product or service to your clients, right? I’m confident you’d normally choose to disregard the formalities and piles of paperwork but you realise that it has to be carried out sooner or later.
You have two choices: Either bite the bullet and allot enough time each to keep up with all of the ancillary paperwork, regulations, and accounting or engage professionals who make that their business to handle those mundane, however crucial, tasks for you. Then you would focus on the bits that you do best. As a new start-up, it is especially important to make sure all your i’s are dotted and your t’s are crossed.
As you begin to reflect on the components of your own business, you will probably unearth new things concerning your company. Changing the way you think about your business might shed new light and will often present you the insight and help you have been searching for.
In our country of small businesses, I applaud you as you have taken action and began on the well worn route to an entirely fresh way of doing business. Don’t end your dream now!
I challenge you to look diligently at your company and make those adjustments you will need to make you more profitable and prevent your business being a statistic. Stretch the limits of your thoughts and imagination and do not be frightened to undertake something new.