Depending on whose statistics you believe, 50-75% of all new businesses fail in the first 2 to 3 years. So, if your business is still in its infancy, and your results are lagging, then you should be concerned and prepared to take immediate action to turn things around.
If you look closely at root cause, there are three fundamental reasons for most of these new business failures:
- Limited resources – i.e. time, people and capital. In a recent focus group we conducted the #1 concern expressed by business owners was time management; having enough time to do all of the important work that needed to be done on a daily basis.
- Focus + planning. Most new businesses try to do too much in the early stages and as a result, stretch their limited resources too thin.
- No sales and marketing system in place to grow the business. This impacts the two biggest revenue drivers – referrals from marketing and new sales.
Don’t let your business become just another statistic; take the appropriate steps necessary to put your business on the right track.
Here are some recommended corrective actions to consider, if your business is struggling or at serious risk of failure:
- Get help now. Hire a business coach or turnaround expert to help you identify the areas where improvement is needed, and develop the appropriate recovery plans.
- Survey your customers. Find out why your customers are not buying, or not buying from you. Fix the things that are fixable to improve results.
- Engage outsource partners to help balance priorities, improve execution and free up your calendar to focus on critical turnaround projects.
- Put more emphasis and budget dollars into marketing your business. Offer new discounts, special incentives or promotional programs to help drive demand.
- Focus on results vs. activities. Set aggressive short-term goals for leads, sales, new customers and revenue growth.
Audit the findings and results from the above efforts on a weekly basis, and make course corrections or changes to the recovery plans in real-time, so you don’t lose momentum. Above all, stay focused and positive about the future of your business.
Remember, your business did not get to this point overnight. But with hard work, dedication and commitment you can turn things around. Best of luck to your future success!
COPYRIGHT © 2010-11 John Carroll