When small businesses first develop a business plan, failing is not the desired end result. How do small businesses avoid failure? One way is to learn from the mistakes of small businesses that have failed. Every unsuccessful business closed for a reason: money, poor practices, high overhead, or ineffective marketing are just a few of the reasons. Take the time to research this invaluable data because it may hold the key to your success. Protect your business from the devastation of closed doors by learning why other others failed.
An amazing idea or product just isn't enough to start a small I business anymore. Without sufficient funds, opening doors to customers is impossible, and many small business owners underestimate the amount of money it takes. Visit the start up cost calculator to put the amount of capital a small business needs into perspective.
Although creating processes and procedures isn't sexy, being inconsistent in how products and services are managed leaves SMBs vulnerable to customer disappointment. "As entrepreneurs.small business owners are responsible for a number of business tasks, including marketing, inventory management, accounts payable, accounts receivable, payroll - in all of these different areas large companies have dedicated departments and specialists."
Successful I businesses market their products and services. But many small business owners aren't taking advantage of easy-to-use, modern technology and marketing approaches. The national average for marketing budgets is 10.2%, yet, 56% of small businesses invest only 3% or less in marketing.
A small business' initial success doesn't mean continued success. Failing to monitor industry trends and evolve means being left behind. Most small business owners wear multiple hats and struggle with time management. However, this is one area worth the investment in time to keep from becoming outdated and obsolete.
History is full of examples of large market leaders who did not evolve and are now either much smaller or out of business (i.e. Blockbuster, Kodak). Study how other successful businesses thrive and incorporate the best of what you find into your business. Staying ahead of market trends will help secure your longevity and be your opportunity to beat the competition.
Companies, regardless of the economy, continue to increase their investment in the proper organization & infrastructure.
The cost of getting it wrong can be astounding. Did you know:
71% of failed projects are traced to poor business processes
40% of the effort in an average project is fixing errors
Process defects account for 56% of re-work
$194.4 billion is spent on business process development
$46 billion is spent on fixing business process errors
If we examine those last two numbers from the USA, almost 25% of all spending on software is rework associated with requirements. Improving business processes through an effective business analysis can have a significant impact on the bottom line.
So what is an organization supposed to do? Some continue to do the same things over and over again.
Doing things the way they have always done them will get the same results. They need to do things differently and that involves taking a hard look at the root causes-poor requirements, questionable strategic alignment and inadequate focus on the business-all things that can be addressed with better business analysis.
fo·cal point /ˈfōkəl ˌpoint
noun: focal point; plural noun: focal points
the point at which rays or waves meet after reflection or refraction, or the point from which diverging rays or waves appear to proceed.