Are You Hitting Your Target?
In today’s business climate, it is easier then ever to start a business and start working for yourself. That doesn’t mean it is right for you. Be sure to avoid these 5 mistakes when going out on your own for the first time.
Experts agree that there are typically 12-15 things (sometimes more) that need to happen in a specific order for an airplane to crash.
In order for a plane to crash, these 12-15 things that need to happen, are both mechanical and human. They also need to happen at a very specific time through the course of the flight.
On their own, these decisions or mechanical failures would not cause the plane to fail. However when put together, and in a specific succession they are impossible to overcome.
As someone who is on a plane at least once a month, sometimes more, this feels like an ominous way to start, but the same can be said for running a business. The size of the business doesn’t necessarily matter either. Multibillion-dollar corporations and small family run business can all be saved, but if certain steps are missed at critical points, in succession, the fate of the business is sealed. Just like that of the airplane.
Have you ever really thought about why a business fails?
If you take a look at a cross section of businesses in different industries, the failures all come down to 5 principal reasons. Each on their own is significant yet can be overcome. However, when combined, the future of the business is bleak.
1. LACK OF PLANNING
Anyone who has ever been in charge of a successful major event knows that were it not for their careful, methodical, strategic planning -- and hard work -- success would not have followed. The same is true of most business successes. Over night success never comes overnight. What you don’t see behind the scenes are the late nights, dedication to getting it right, difficult decisions and failures that allowed them to show up “overnight.”
One thing that is overshadowed in today’s start-up mentality is that the difference between a great idea and a great business is the implementation of the planning and execution of the work needed to get there.
Although a business or start-up may “pivot” in their strategy several times before getting it right, it is critical for all businesses to start with a business plan. Many small businesses fail because of fundamental shortcomings in their planning. Even if the company starts out as an army of one, the plan must be realistic and based on accurate, current information and educated projections for the future.
Components should include:
- Description of the Business:
- Its Vision
- its Goals
- its Keys tho Success
- Work Force Needs
- Potential Problems & Solutions
- Competition Analysis
- Marketing, Advertising & Promotional Activities
- Budgeting & Managing Growth
- Financial Planning:
- Capital Equipment & Supply List
- Balance Sheet & Income Statements
- Cash Flow Analysis, Sales & Expense Forecast
Planning is very difficult and direction is always open for debate. Having a plan, and then failing to adapt it (or grow as a result of it) when the market changes is as bad or worse then not having a plan at all. Perhaps your initial business model can produce a certain level of activity, but if you are not perpetually studying your market and evolving accordingly, you run the high risk of being left behind.
Do your research on your industry and the market in your geographic location first, then expand outward as your goals broaden. You may find that you can be ahead of trends in your area based on similar companies in other areas. Study how other successful small business owners in your area thrived and incorporate what you find. Taking the time to do the nitty-gritty research will pay off when you are ahead of market trends and standing out in your community.
How to Overcome Lack of Planning.
If you have entered into a new business, or just hit a roadblock in your existing business, there are ways to recover. One of the first things you need to do is step back & look at what you do well now & what actions are generating results. Double down on what you do well and start stripping away the stuff that is not generating the desired outcome. The first step that we take at The Aebli Group when we begin is outlining a daily, weekly, monthly, quarterly & yearly marketing calendar.
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