So many people have the opportunity to run their own business, but they are so involved in DOING that they don't take the time to learn how to be a manager as well. The risk of NOT continuing learning and trying new things will mean that they will not have a successful business, but will close their doors without gaining their dream.
If they see the value and open themselves to the possibilities, they gain the ability to grow, expand and flourish. Unfortunately, the environment today biz is one so heavily hit by the recession that people are afraid to step out of their comfort zone and accept the benefits offered through programs such as training/education, networking, masterminding and more.
Hey, not every one is P.T. Barnum...networking doesn't just happen for most.
Small business is as close to a personal experience that a consumer can get today. All this mega conglomerates just takes the "people" out of the picture and make it about profit.
Small business has a unique opportunity to gain and share personal experiences that some people are paying top dollar just to experience again.
You can lead a horse to water...and so on.
But to enable, empower a small business person you kind of have to show them what their vision of success could be and allow them to naturally gravitate to it.
I often get asked. “What is the major cause of failure in business?” The main reason for failure in any business, or in life for that matter, is that people are afraid.
But my question is: afraid of what? Afraid of success? Afraid of failure? To me the greatest failure is not taking action to change.
The only real conflict any of us have is self-conflict…we have conflict with our own comfort zone…our own fears and doubts. That’s the only thing that stops us.
Having the courage to take action…to step out of your comfort zone…or letting fear run your life…well, I suppose that’s the battle we all face in one way or another.
And I think often times the skeptic inside asks other skeptics what to do, and we get talked out of our freedom by someone who isn’t free!
The number one component of being successful in any business, is to investigate possible opportunities, make a decision, take action and then let go of the need to control the outcome.
Bottom line .... be bold not fearful.
Showing posts with label Small Business Risk. Show all posts
Showing posts with label Small Business Risk. Show all posts
Thursday, January 5, 2012
Thursday, April 7, 2011
5 Dangers Faced By Small Business .... And What To Do About Them
No one said starting a business was a walk in the park. The truth is just the opposite. Be realistic and persistent and you can be among those few who do make it. To arm yourself for the fight below is listed the risks most common to all SMB's .... together with suggestions on how to deal with them.
1. COMPETITION .... Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
2. PIONEERING .... If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
3.CYCLES AND TRENDS .... Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
4. SLOW TIMES .... Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
5. OWNERS EXPERTISE .... Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
1. COMPETITION .... Most businesses have competition. How will your business differ in significant and positive ways from your competition? If your competition is strong, don't minimize that fact, but figure out ways you will adjust to or use that strength. For example, if you plan to open a restaurant next to an extremely popular one, part of your strategy might be to cater to the overflow. Another might be to open on days or evenings when the other restaurant is closed.
2. PIONEERING .... If you anticipate no direct competition, your business probably involves selling a new product or service, or one that is new to your area. How will you avoid going broke trying to develop a market?
3.CYCLES AND TRENDS .... Many businesses have cycles of growth and decline often based on outside factors such as taste, trends or technology. What is your forecast of the cycles and trends in your business? For example, if your forecast tells you that the new electronic product you plan to manufacture may decline in three years when the market is saturated, can you earn enough money in the meantime to make the venture worthwhile?
4. SLOW TIMES .... Every business experiences ups and downs. Is your business small and simple enough, or capitalized adequately enough, to ride out slow times? Or do you have some other strategy, such as staying open long hours in the busy season and closing during times of the year when business is ?
5. OWNERS EXPERTISE .... Nobody knows everything. How do you plan to compensate for the knowledge you're short on?
Write your risk analysis by first thinking of the main dangers your business faces. This shouldn't be hard, as you have probably been concerned about them for some time. Some of these may be on the list set out above; others will be unique to your business. Once you have identified the principal risks facing your business, write out a plan to counter each. But don't bog yourself down worrying about all sorts of unlikely disasters.
Monday, March 28, 2011
3 Biggest Risks For Small Business In A Down Economy
In any down economy small business seems to be hit the hardest. Listed below are three risks every small business should be aware of ... so you can roll with the punches and survive standing.
1. Running out of cash. Many business owners don't realize how much working capital it takes to run their business. They think about how much cash it takes to acquire a company, but not how much it takes to run the company.
2. Too much customer concentration. It is a big risk to have too few customers. If a company has a large customer that provides 75% of its sales, they are in a very risky position. All it takes is one decision for a customer to change where they purchase from and you are out of business. Take the time and effort to diversify your customer base so that your largest customer represents less than 10% of your business.
3. Giving up and waiting for something to happen. During these slow times in the economy, I find far too many business owners giving up on innovating and just waiting for the economy to "turn around". When the economy slows down, you need to increase marketing efforts and become more creative, not less. If you are waiting for the economy to turn around, you will be watching the innovative players in the market earning all of the market share.
Do whatever you have to avoid the above 3 situations. Any one of them can end up making you close your doors if you're not careful.
1. Running out of cash. Many business owners don't realize how much working capital it takes to run their business. They think about how much cash it takes to acquire a company, but not how much it takes to run the company.
2. Too much customer concentration. It is a big risk to have too few customers. If a company has a large customer that provides 75% of its sales, they are in a very risky position. All it takes is one decision for a customer to change where they purchase from and you are out of business. Take the time and effort to diversify your customer base so that your largest customer represents less than 10% of your business.
3. Giving up and waiting for something to happen. During these slow times in the economy, I find far too many business owners giving up on innovating and just waiting for the economy to "turn around". When the economy slows down, you need to increase marketing efforts and become more creative, not less. If you are waiting for the economy to turn around, you will be watching the innovative players in the market earning all of the market share.
Do whatever you have to avoid the above 3 situations. Any one of them can end up making you close your doors if you're not careful.
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