More mistakes in Business

85% bust in five years

Wednesday 21^st October 2009

 

Many small businesses fail within the first five years of being in business.  Often this is because the entrepreneur simply lacks the know-how in a particular aspect of their business.  This unfortunately is particularly true for the sole proprietors who start off with very good intentions but haven’t realised how many hats they have to wear. 

 I have for some years run business start-up courses for the Liverpool Chamber of Commerce and it has always worried me, that although we have got them off the ground and they have received the various grants they were eligible too.  After a few years they have started to flounder, why?  It may be that although they have been good in creating their individual crafts, they have fallen down on keeping on top of the accounting system or the distribution of their products. 

 I know that a few who have contacted me have required, they think, further funding to expand but when I’ve talked to them, that’s not necessarily what they should be doing at this moment in time.  Because they lack the basic skills they need to network themselves at the moment, mainly because they are working to closely “In the Business”.

 What can be done?

Firstly they need to start working “On the Business” not in the business.  They should be looking to finding a mentor, consultant or a group of advisors but what you do need is the expertises you yourself don’t have.  You should remember that your business will benefit from the advice of 2 or 3 people who are experts in their own right, because they can provide you with knowledge in the areas that you need help in. 

 These people could be your family or friends or someone from outside your present sphere of influence.  The important thing is that they will give you an honest assessment of what they think you are doing and where at the moment they feel the business is heading.

 Or you can request the help of the many professionals in your area, if your unsure, I would always suggest, where ever in the world your business is situated, your local “Chamber of Commerce” is there to help businesses in their area, that’s even if you’re not a member, they usually are more than willing to point you in the right direction.  You should also start going to the many Networking events that are run every day of the week, very often you will find people there who can point you in the right direction as well.

 

Some more thoughts tomorrow