Are you spending all your time working in the business? (Your Business. Part 3/5)
In part 2 of this series, tip 4 was to learn from mistakes. If, in the first one to two years, a business owner responds to what works, and what does not work, in the market place, and their offer becomes very compeling, the business will survive, providing they don’t run out of cash to live on. Revenue will exceed costs and the light will be seen at the end of the tunnel. Given that 30% of business either fail or the owner gives up after two years, this is a significant turning point. So, what next?
The most common course for businesses is for the owner to become the face of the business. They will direct activities and solve issues as they arise. They have the technical knowledge and can answer questions with authority and confidence. Customers will turn to them in preference to the staff, as they know the owner will sort issues out.
Controls in the business, unless it is in a highly regulated sector are likely to be minimal. Yes, there might be the odd staff issue, quality issue, delivery problem but generally these can be resolved without too much fuss. Unless there is a significant external factor, or the business is highly exposed to one client or supplier, probably the only thing which will cause the business to fail, is a large bad debt or the owner being taken seriously ill for a long period.
As a profitable output from the business was developed at the earlier stages of its formation, the owner will be enjoying a comfortable income. The business becomes a lifestyle. 95% of business in the UK have a head count of less than 10. Up to this size the business is both controllable and generally enjoyable to run. Respect and status can come with the business success, but the flip side is that it may become all time consuming. We call this the owners’ trap.
If you feel you are in the owners’ trap spending too much time working “in” your business and need to do some work “on” your business, then please request a no-obligation “health check” where we will discuss how Business Doctors can assist you to escape from the owners’ trap. http://ow.ly/H4rc30jfQIu
Growing your business
A sales strategy is a well-defined and mapped-out plan aimed at selling products or services and increasing revenues. A sales...
The Institute of Chartered Accountants in England & Wales (ICAEW) publish a quarterly UK Business Confidence Monitor and Q4 2019...
Find Your Purpose Your Core Purpose should come from a mix of what you love, what you are good at,...