Small
business failure rates are alarmingly high for several reasons.
The truth is; some small businesses just gets "blown out
of the water" by well-organized aggressive competitors.
Others are guilty of misreading what it is the market really
wants. And, then there are those who simply fail on the basics
or fail to seek (or act on) small
business advice.
Here are 4 gems of small business advice not to be ignored:
Small Business
Advice # 1. Start Small
The first two years in any small business is
usually the most critical. It is the time when you spend money,
not only setting up your business, but also in attracting first-time
customer's. Unless you have unlimited funds, it is usually best
to start small. My small business advice is to keep your overheads
to a minimum until you are confident of success.
Small Business
Advice # 2. Don’t Waste Money
Be careful about spending money on non-essential
items. For example,
you may want a cellular phone, but do you really need one to
operate
your business efficiently? You may want a late model car, but
does your small business really need the latest model? My small
business advice is to have a firm grasp of what things cost
and their value to your business.
Small Business
Advice # 3. Avoid The Cash Flow Trap
Cash flow is the lifeblood of any small business.
Poor cash flow is often the first indicator that a small business
is in trouble and not making enough (or any) profit. Cash flow
needs to be monitored closely in any business, especially one
that is just starting off.
My small business
advice is top remember these two points. 1. Things always seem
to cost more than for what you budgeted. 2. Sales (or payments)
can take a long time to start flowing in.
Maintaining good cash flow in a new business can be difficult
especially if the small business begins its life undercapitalized.
A new business is disadvantaged by not having previous business
records to budget with. The owner usually has to rely on estimated
sales volumes, estimated overhead expenses and estimated seasonal
variances etc. Any of these could prove to be wildly inaccurate
and be the undoing of a small business.
What about small business advice for expanding a business? Be
careful not to let cash flow become too tight. Bankers and suppliers
need to have confidence in your ability to meet your debts.
If cash flow gets too tight, then perhaps you need to rethink
the way you are doing business or another option is to limit
your growth plans.
Small Business
Advice # 4. Get Out Of Debt
The quicker the better! That’s not to
say that you shouldn’t borrow money to grow your small
business. If the numbers stack up - then why not? An injection
of cash at the right time, for the right purpose, could be just
what the doctor ordered. However, interest charges and repayments
on monies borrowed, can be a constant drain on cash flow for
any small business.
The more you owe the higher the risk. If the economy tightens
or the market changes, how much you owe may influence your ability
to weather the storm.
In summary my small
business advice is simply this. Success or failure in a
small business doesn’t happen overnight. It doesn’t
happen by accident. Success in small business is a mix of thinking,
systems and actions - all working together, day in and day out.
Success occurs when opportunity is linked with preparation...
which in turn is linked with hard work... which is then linked
with action. So, for any small business owner it is important
to get seek the right small business advice from day 1.
The best-selling small business ebook "Sell
Your Business The Easy Way" is packed with helpful
ideas for increasing small business profits.
© Market Leaders ebooks. All Rights Reserved.
********************************************
Get Your 100% FREE mini-course "17 Powerful Secrets
That Have Made Business Owners Into Millionaires."
100% FREE! Simply send a blank email to:
instantsellbusiness@subscribemenow.com
********************************************
|