Fact: Over 50% of all businesses will not survive to see their 3rd Year.
So, Why do so many businesses fail?
Failure to plan, Poor management, Lack of Cash Flow, & Growing too fast, too quick are at the top of the list not being able to succeed.
So, what can you do to avoid these mistakes?
- Proper Planning, which should include a business plan, marketing plan, and a budget
- Know your finances inside and out. Understand your cash flow, completely. Keep your books up to date by hiring a third-party bookkeeper.
- Define your internal and external processes. This will help you to never miss a deadline and to never promise something that you can't deliver.
To begin, you need a strategic plan. A business plan will be your road map to how your business can achieve the success and vision that you have in mind.
But, that isn't the only plan that you'll need. You should also take the time to develop a budget. A well planned budget should allow for normal monthly expenses and should also incorporate a savings plan for those unplanned expenses that seem to arise.
Know where your money is, and know what your cash flow looks like. It is normal to experience times when your cash flow is tight, but understanding your cash flow will help you to plan accordingly. Investing in a relationship with a qualified Bookkeeper will ensure that your books are balanced and reconciled properly. In addition, you will be able to rely on the books being up to date at any given time. Not only can you depend on getting accurate monthly financial reports, but you can access your companies books at any time, from anywhere.
In addition, to making sure that your finances are in check, you should also take the time to develop internal and external processes. This allows the business to run at optimal levels by preventing bottlenecks and will help you to deliver your promises on time, everytime. Nothing can discredit a company faster than missing a due date, or by not delivering the product or service that you promised. If you struggle with this, then it might help to ask for a process analysis by a third party, like Beyond Paper. Sometimes, a fresh set of eyes can see things that you're overlooking because you're too close to the process or the product.