Any time I set up a new business owner, there are always somewhat mixed emotions involved.
Because on the one hand, I want to congratulate him or her – as we all know owning as business can be a dream come true.
But at the same time, I have to give them my condolences as well, because I know what troubles lie ahead – and the fact that 50% of businesses fail within the first year, and 95% within the first five.
And unfortunately, from my experience, the cause has been that they simply “don’t know what they don’t know.” And these are the common mistakes that result in very restricted growth in profits, lost sales opportunities, little-to-no cash flow, and then ultimately to no business at all.
And even worse, it doesn’t end there because a small business is not like a large corporate company – or a collection of people who come and go.
But when an owner strikes out on his own to pursue his visions, there is much more at stake because his personal livelihood is tied into the business.
And what’s really sad is that most of these mistakes that lead to business failure could be avoided if the owners were only aware of them, and if they had the proper advice in time.
So therefore, one of the responsibilities I take with small business owners is to provide the most efficient, risk-averse position in any case scenario.
And not only so, but when a business is running into trouble, the numbers must show it a long way off, so that action can be taken early.
Because the bottom line is, although most owners have failed to see it this way, you’re only talking business if your numbers if your numbers can support it.