Tina’s Tidbits by Tina White
Did you know 44% of small businesses fail within the first 3 years? Scary!
It is every entrepreneur’s dream to build a successful business. The last thing on your mind is failure.
The good news is you can reduce your risk by avoiding the top pitfalls listed in the Statistic Brain’s Study.
Lack of Planning
Planning is critical to the success of your business, but you don’t need a 50 page business plan.
Start small. Grab a sheet of paper and write down your top priority for the next 90 days. Analyze the goal from every angle – financial, sales, marketing, employees and operations.
No Knowledge of Pricing
Entrepreneurs often under value their time. It’s no wonder pricing is one of the reasons why businesses fail.
Pricing is the lynch pin of your business. When your price is right, everything else falls into place.
Your best bet for charging what you’re worth is to focus on the outcomes (the benefits you provide) instead of the inputs (the number of hours you spend).
No Knowledge of Finances
This reason for business failure is especially painful for me. As a CPA, I wish I could help all entrepreneurs understand the key numbers that are vital to the success of their business.
People often say “work smarter, not harder” but what does that mean? I believe it means tracking and measuring your key numbers. You can improve what you measure. When you take the time to study your numbers, you drastically increase your chance of success.
At a minimum, you should know these numbers off the top of your head in real time: profit, overhead costs and accounts receivable.
Please don’t be fooled by your cash balance. You could be sitting on a ticking time bomb. The best way to prevent failure, is to be proactive with your finances.
The Bottom Line:
The best way to avoid being a statistic is to take control of your finances. No one cares about your business more than you.