Reasons for Business Failure

Of course it is not only lack of planning that can cause a business to fail. Here is a quick list of the major reasons for failure:
1. Lack of Planning
2. Going in to business for the wrong reasons
3. Insufficient capital
4. Sloppy book-keeping
5. Location, Location, Location
6. Poor Marketing
7. Poor Management of employees
8. Insufficient experience
9. Expanding too much and too quickly
10. No website

Business Goal Setting Success

Failing to Plan and set goals and strategies is the single most common management trap among new struggling business owners! ‘Big Business’ is very aware that planning is very important, but it is essential for a small business because it hasn’t the resources to cope with any mistakes as does a large organisation. It is not an easy exercise, but this vital work can save a lot of heartache, and create a clear path forward, and a structure for systematic development.

One of the greatest difficulties in planning ahead is to obtain estimates or predictions of sales. It is virtually impossible to think of all the possible impacts on sales and on your potential market; so getting an accurate figure is hard. However calculated estimations can be made, based on a well thought out group of assumptions, and then trends in figures can be observed, and adjusted as time goes on.

Examples of Business Goals

When writing business goals and objectives these following items need to be addressed as a minimum. A business plan should examine each of these in considered detail – the owner needs to research each and have created some credible figures for the future, and prepared a plan for growth and development based on them. Changes can, and indeed should, be made over time – this plan is a work-in-progress.
• Description of the business, its vision and aims
• Staffing requirements
• Finance – capital requirements now, and in the future
• Accounting systems – balance sheets, projected profit, cash flow forecasts, budget for sales and expenses
• Equipment needed
• Projected growth and how it will be financed
• Potential problems and how to handle them
• Investigation of competition
• Promotion of products (or services) – marketing and advertising

This is merely an example of business goals and objectives, of some of the major items to look at. You can find detailed forms for business plans on the net for a small fee. It is worth while going through the exercise, in fact as we mentioned before it is imperative.

When writing business goals and objectives

Research is paramount – the plans must be based on current information and figures, of course they must be accurate, and a logically structured list of assumptions must be used on which to base projections. Failure to take the time to think beforehand will have obvious ramifications. This is the area where most businesses fall down. If they do failing the first five years – it is generally because of lack of planning.

Let’s finish on a happier note – good planning, with some help perhaps, can make an enormous difference.

Choosing a Business Coach

A most powerful source of support is to engage an impartial business coach. But how do you choose the right coach? Before making this crucial decision read: “Do I Really Need a Life Coach? Everything You Need to Know about Being Coached”

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