Business and risk is always going with hand in hand. Than the bigger organizations risks or the threats of failure makes a big hit to the smaller, recently start-up companies. Many people believe in a myth that smaller companies cannot overcome if they faced any failure. But the truth is smaller companies too have possible tackling points that can save their ship before sink to the deep.
A fundamental part of overcoming business failure is rooted in the mindset you have. It begins with a flexible and positive attitude and a willingness to change. In many failed smaller companies the root cause of the organization starts with top; the Management of the company. Business owners are not accepting responsibilities. After all, when you’re in the CEO chair it is easier to blame slack employees, lack of consistent funding, and other excuses, rather than stepping up to the plate. Of course, a business can’t sink itself without the captain steering clear of safety first.
Pay your attention to the below points to keep your business on a firm foundation, ready to weather predicted or unexpected storms, aiming to damage your enterprise.
01. Carry out frequent SWOT analyses of your business system
A SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis is an examination of the internal and external areas of your business. The aim of this exercise is to identify areas that are working and those that are not.
To prepare a SWOT analysis, begin by making a list of your identifiable strengths and weaknesses. Ask yourself where you would like your business to be in the future. Look at where you are now. Use the results of your SWOT analysis to design the goals you intend to accomplish and to develop a plan of action.
02. Set SMART goals and develop achievable strategies to attain them
When setting goals for your organization make sure that the goals are meeting the following characteristics.
- Specific : State what you want to accomplish
- Measurable : What results do you want to see? Break them down into easy, doable steps.
- Achievable : Make sure you have the time and resources to make them a reality.
- Relevant : Your objectives should line up with what you’re trying to accomplish for your business
- Timely : Set a deadline to work towards
03. Believe in yourself, and prepare for the (inevitable) bad times
When you’re up against unexpected trials that breed stress, your mind becomes muddled. Plus, your self-esteem could take a tumble, having an undesirable effect on how you see yourself.
Safeguard yourself by developing resilience. Understand that businesses as well as your life reach the maturity with unexpected difficult situations that you face at your journey. Assess the situation objectively. Speak with a trusted friend or family member instead of ignoring the problem. Don’t be hard on yourself, and keep believing you can overcome the obstacles you are facing. Surround yourself with the right support network of people. Don’t give up.
04. Cash Flow Problems
Poor accounting can be the death of any business. You cannot run a business if you have no clue about numbers. You are flying blindly, and you will certainly crash and burn. Not having enough capital to cover monthly expenses and business operations, using profits to pay bills, issues in customer payment collection system, using your personal funds to cover business expenses; these are all big no-nos. If you don’t have good accounting skills, invest in someone who naturally handles the nuts and bolts of the financials effortlessly or bring in a partner that can manage the business operations. This will lead to a load off your back.
First, have a cash flow forecast so you know what money is coming in and out. Remember, this is only a forecast, but it will give you an insight into your financial future.
05. Keep your customers at the heart of your business
According to Gartner statistics, eighty percent of a company’s revenue comes from 20 percent of its customers. Loyal customers are the success stories of your business. Involve them in your business strategies when planning marketing campaigns and developing new products. Share their case studies, consider their points of view and positive and negative feedback, and make them feel important.
06. Keep your mind open for new ideas
Take what you do seriously and be effective; however, do not over micromanage where you become annoying. No one likes to work for or with a Mr. Know-it-all. Be open to opinions and criticism. Be pleasant and likable, but not over the top. You are here to make money, not become best friends with everyone.
07. Invest in an advisor or mentor, and draw from their expertise
Invest in a business mentor or advisor to guide you. Draw from their pool of knowledge and personal experiences to help your business grow.
It’s tough running a business alone. Entrepreneurs need encouragement, guidance and reassurance when faced with problems. Because mentors have been in similar situations, they know how to help you. They’ll share valuable advice, give you constructive feedback and connect you with the right people. Invest in a business mentor or advisor to guide you. Draw from their pool of knowledge and personal experiences to help your business grow. According to a survey carried out by Sage, 93 percent of medium sized businesses credited their mentors for helping them succeed.