Core Business Solutions Advice

My past 4 blogs have reviewed the first four of the seven areas that I think contribute greatly to business failure. The first four were 1-A Lack of Planning(No business plan), 2- Starting a Business for the Wrong Reasons, 3- Insufficient Capital and the last reason reviewed was #4-"No Website". Of all the top 7 reasons businesses fail, #5 -"Poor Management" is high on my list in terms of frequency.

So what's the big deal regarding managing a business?

Many reports on business failures cite Poor Management as the number one reason for failure. Why?

The reason is that business owners (especially those who come from a corporate environment) lack expertize or even basic knowledge in areas such as:

• Finance
• Purchasing
• Production
• Marketing
• Hiring & Managing Employees
• Selling

Unless they recognize what they don't know or what they can't do well, and most importantly, seek help, business owners will soon face disaster. Each of these areas must be covered in detail in the business plan. Business owners must also be educated and alert to fraud, and put into place measures to avoid it.

Neglect of a business can also be its downfall.

Care must be taken to regularly study, organize, plan and control all activities of business operations. This includes the continuing study of market research and customer data, an area which may be more prone to disregard once a business has been established. This is precisely why the Business Plan (see #1 in this series) must be a living document that is reviewed at least quarterly or monthly for new businesses and annually after 2 years in business.

A successful manager is also a good leader who creates a positive work environment that encourages productivity. This means the business owner must always approach everyone working in the business with an upbeat manner. Any employee performance or attitude issues should be handled in private, away from the work area and documented.

A professional manager has a skill at hiring competent people, training them and is able to delegate. Remember: the definition of management is: 'getting things done through other people'. So you must find the best people which means hiring people better than yourself and letting them do their job. Avoid micro-management, set proper expectations and measure the results. Believe it or not, good employees want to know how they are doing, so be sure you have the correct reporting tools to let them know how they are doing, both as a group and individually.

A good leader is also skilled at strategic thinking, able to make a vision a reality, and able to confront change, make transitions, and envision new possibilities for the future. Change is a constant in business so embrace it and get it done!

In Stephen Coveys " 7 Habits of Highly Effective People" he describes how to "Think with the end in mind." So what's the end result you have in mind? How will you achieve it?
I strongly encourage anyone who owns a business to read Covey's book. It's a terrific road map to being an effective person in business and also in your personal life.

"You're at the top when your pleasant to the grouch, courteous to the rude & generous to the needy." - from Zig Ziglar

Next time I'll review the 6Th of the 7 Top Reasons Businesses Fail.

In the mean time:

Live Simply.
Speak Kindly.
Care Deeply.
Love Generously.

All The Best...Always,

Walt Morey - Executive Business Advisor- Accredited by the Institute for Independent Business
http://www.corebizsolution.com/

In my past 3 blogs in this series, I reviewed the third of the 7 areas that I think contribute greatly to business failure. The first three were 1-A Lack of Planning(No business plan), 2- Starting a Business for the Wrong Reasons and the last reason reviewed was "Insufficient Capital".

"Poor Management" was to be the next topic, but after a discussion with one of my clients recently, I decided to change the next topic for discussion.

The next top 7 reason businesses fail I'll cover is:

No Website

Simply put, if you have a business today, you need a website. PERIOD!

In the U.S. alone, the number of Internet users (about 70 percent of the population) and e-commerce sales (about 70 billion in 2004, according to the Census Bureau) continue to rise and are expected to increase with each passing year.

Since 2004, the U.S. has led the world in Internet usage.

At the very least, every business should have a professional looking and well-designed website that enables users to easily find out about their business and how to avail themselves of their products and services. Later, additional ways to generate revenue on the website can be added; i.e., selling ad space, drop-shipping products, or recommending affiliate product and others as well.

Remember, if you don't have a website, you'll most likely be losing business to those that do. And make sure that website makes your business look good, not bad -- you want to increase revenues, not decrease them.

When it comes to the success of any new business, you -- the business owner -- are ultimately the "secret" to your success.

For most successful business owners, failure was never an option. Armed with drive, determination, and a consistently positive mindset, these individuals view any setback as only an opportunity to learn and grow.

Here is an interesting fact: Most self-made millionaires possess average intelligence.

What sets them apart?

A-They have an openness to new knowledge and new ideas.

B-They have a willingness to learn whatever it takes to succeed.

C-They seek guidance and help from experts.

So, if your business does not have a well designed and positioned website, you are falling behind your competition every day and losing money. Invest in a website for your business. Remember, it takes money to make money.

Next time I'll cover another reason(#5) of the Top 7 Reasons Businesses Fail.

It was Napoleon Hill who said it best : "Success Requires No Explanations---Failure Permits No Alibi's" [From 'Think and Grow Rich']

Have a great day and most of all...Have a Great Time!

All The Best,

Walt Morey - Executive Advisor- Accredited by the Institute for Independent Business

http://www.corebizsolution.com/

In my last 2 blogs in this series, I reviewed two of the seven areas that I think contribute greatly to business failure. Those were 1-A Lack of Planning(No business plan) and 2- Starting a Business for the Wrong Reasons.

Another common fatal mistake for many failed businesses is having insufficient operating funds. Business owners underestimate how much money is needed and they are forced to close before they even have had a fair chance to succeed. They also may have an unrealistic expectation of incoming revenues from sales which is typically as a result of incomplete research or due diligence.
It is imperative to ascertain how much money your business will require; not only the costs of starting, but the costs of staying in business. It is important to take into consideration that many businesses take a year or two to get going. This means you will need enough funds to cover all costs until sales can eventually pay for these costs. This same principle also applies when you plan to expand your product line or start new divisions of your company. Take the time and plan and research all the issues to remove any surprises.

But how does a business owner, especially a new business owner, discover what capital it will take to get your business off the ground? A good way is to talk with a CPA and review all the costs with them. CPA's are invaluable as they probably have clients that had the same issues when they started their business. Start with a P&L statement and be brutally honest with yourself. What will it cost you for marketing, monthly office expenses and the list goes on. Review every item and set some realistic figures. Talk with others who have started new businesses or ask business advisors or consultants or even some bankers for their input.

If you have actually completed a written business plan, you should already have potential budgets and forecasts figured out, thus part of the answer goes back to installment #1 {see topic #4 Financial} in this series of this blog-Planning! I see many new businesses try to build a business with too little funds as result of 'pie in the sky' thinking. Set reasonable expectations and assume that it will take at least 1 year before you'll begin to see any black ink.

Investigate every source you have to fund your business properly. Do it right the first time and avoid the heartache of seeing all your hard efforts just be for nothing. Secure the proper funding and if you have a real passion for your business, you chances for success improve greatly.

In about 2 weeks, I'll take up the subject of: "Poor Management" This is another of the top 7 major reason businesses fail and many see it as even the most common reason, so I'll explore it next time.

I sincerely hope this series is helping you. Until next time-

All The Best,

Walt Morey
Core Business Solutions www.corebizsolution.com

On May 16th I started a series entitled :The Top 7 Reasons Businesses Fail" and my first installment of the series , on May 28th, covered the concept of planning (or the lack of it) as the most critical and I believe the biggest reason businesses fail. I think another big reason for failure is that the business is started for the wrong reasons in the first place.

So, did you start your business for the wrongs reasons? Lets see,is the sole reason you would be starting your business be that you would want to make a whole lot of money? Do you think that by owning your own business you'd have all kinds of freedom and much more time with your family? Perhaps the fact that you wouldn't have to answer to anyone else, is that one of your reasons? If so, you had better rethink your position. These are not good reasons to start a business of your own.

You will have a better chance of success with your business if you start it for these reasons:

• You love and have a passion for what you'll be doing and based upon educated study and extensive investigation, you deeply believe that your product or service will fulfill a strong need in your marketplace.
• You don't let failures defeat you. When you make mistakes you learn from them and use what you've learned to succeed next time. Head SBA economists have noted that studies have shown that successful business owners attribute much of their success to "building on earlier failures" or looking at failures as a "learning process".
• You have and can maintain: a positive attitude no matter what, strong determination to get things done, an unrelenting drive and unending patience. When others give up, you are more determined than ever to do better.
• You have the required mental stamina to withstand potential challenges and you are physically fit to handle all the effort required. Many bankruptcies happen because of often overlooked, less-than-robust health.
• You thrive at taking charge when a creative or intelligent solution is required. You cherish independence and take control especially under strict time constraints. You'll 'get it done'!
• You exhibit in your integrity, honesty and interactions with others that you like--if not love--your fellow man. You can help and deal with all types of people and you strive to be productive with them as well.

So, can you be brutally honest with yourself and say" these are the reasons I have or want my own business?" Be sure to take off those rose-colored glasses and read these reasons over and be sure they are all your reasons. If you are missing any you'd better think again about owning your own business. It is not for everyone. Are you sure it's for you?

Next time, I'll take up the subject of: "Insufficient Capital" This is another of the top 7 major reason businesses fail.

I sincerely hope this series is helping you. Until next time-

All The Best,

Walt Morey

Core Business Solutions

http://www.corebizsolution.com/