Your Business

Businesses, like many things in life, fall into two general categories: successful businesses and those that are not so successful. The successful ones grow profitably, generate cash flow, show increased value over time and operate smoothly. Those "other" kinds of businesses...don't do any of these things and usually fail. Here are 15 ways to make sure that your business fails....or conversely, things not to do. 1. No priority on marketing. Many times the most successful businesses don't have the best products or services. What they do have is good marketing...and they make it a priority. In difficult economic times many businesses cut the marketing budget first. That is a mistake. If your business isn't pursuing many channels of marketing, then it is at risk. 2. You do not have a detailed cash flow budget and projections. Cash flow is not a function of your bank statement. Many small businesses look at their bank accounts...if there is money there...they're OK. Cash flow and profits are not the same...and the primary reason that businesses fail is that they run out of cash.. It is essential to know how much cash you have, and how much you will need in the near and mid-term. Anticipate the unanticipated, use multiple scenarios, plan for a variety of circumstances...all of these things and more can go into your cash flow projections to make sure that you are ready for anything. 3. You run your business by the seat of your pants. Businesses that last cultivate talent....not rely on the owners/founders. Successful businesses have documented processes and systems in place that help the business run smoothly and grow with or without the presence of the owners or a single key person. 4. Your business is not differentiated. If you offer the same product at the same price as other businesses you likely won't last long. You need something to differentiate yourself from the pack...even in a small way. Your advantage could include people, product leadership, great operations, or other unique factors...from the supply side of the business to the service you offer customers. Find that uniqueness, capitalize on it and you're ahead of the pack. 5. Your customer service is poor. Most businesses won't admit to having bad customer service, however many do. In the current marketplace word of mouth is the internet...and bad customer service stories are all over it. It is crucial to understand your customer's expectations and measure up. It is critical for your employees to "make the difference" by taking opportunities to turn service around. The key is training and standards and most of all....communication! globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale globalyachtsforsale 6. Your business lacks focus. Know who you are. Small business owners have an entrepreneurial spirit which frequently means lots of things going at the same time. Successful businesses are focused. Understand what you do, where it fits in the marketplace and stay with it. Your customers will repay your efforts by understanding your business and parting with their cold hard cash! 7. You have the wrong people. Your most important asset is your people and having them in the right jobs. If you don't have the systems to train, recruit and retain your good people...and get rid of the poor performers your business is in trouble. 8. You spend money on things that don't move the business forward. If you have defined your mission, your customer base and have an understanding of your business, you know where to spend your money. Many businesses spend their cash on things that make someone feel good, but don't move the business forward. Take stock and review your expenses frequently....making sure that you use all of your financial resources on things that are important to your business and that you eliminate unnecessary and unproductive expenses. 9. You don't communicate your mission or purpose. If your mission and strategy is all in your head...it isn't doing anyone any good. Your employees are allies and can implement your strategies on a day to day basis. You will be surprised at the contribution your employees will make if you let them in on the "secret". They will find things you missed and contribute ideas you never thought of. 10. Your fixed costs are unnecessarily high. There are always ways to reduce fixed costs.. Thanks to technology and outsourcing, you can cut many of the costs you assumed were unavoidable. 11. You have the wrong attitude. Businesses fail everyday because the owner's ego and desire for status gets in the way of business. Control is not the be-all-end-all for business. Be a leader and recognize talent. Place your emphasis on the bottom line rather than your ego. 12. You don't live by the numbers. Measure the key indicators of your business. Pick a number of indicators that really mean something to you and live and die by the metrics. These measurements will be different for every business...but changes in the metrics that you follow indicate something that needs your attention...and now. 13. Your business has no control over its' environment. To be successful you need some control over your vendors or customer...not face excessive government regulations, not have excessive competition or be in an industry that is easily entered. If all of these factors are in your favor...you could be golden. If they are all working against you, you could be in lots of trouble. Take stock of these forces and determine your place. 14. Your cash flow is upside down. If you revenue comes in only after you have put in lots of cash you are constantly at risk for significant loss. Your risk is heightened by the revenue cycle. Companies like this don't usually go the distance. 15. Your crystal ball doesn't "do" revenues. Understanding the cash flow, budgets and the metrics of your business help you understand that putting certain dollars in the business yields certain revenues. While all businesses occasionally face uncertain revenue streams, the survivors in business have plans in place to deal with these variations...and can predict their revenues within an acceptable margin. Your Ouija board should consist of reports and evaluations of your business done with meticulous frequency.