Businesses are at the greatest risk of failure in the first few years of trading – fairly obvious you might think?
Although chances of survival increase the older and more experienced a business and its management become, 50% of VAT registered businesses still fail within 5 years. It may take up to 10 years for a business to stabilise.
The main reason for business failures and low profits of small businesses is that the owner lacks experience in managing all aspects of a business at the same time.
It is easy to be distracted by solving one problem and miss others until it is too late.A business must be kept in balance, even when it is growing rapidly.A manager must, for example, realise that a business can fail as much through achieving too many sales as it can through too few sales.Most failure can be avoided if the right measures are taken.
A survey of South East businesses commissioned by Business Link, revealed that businesses are missing profits by ignoring strategic advice.
- The report showed small businesses that seek and use business advice typically make up to 49% higher profits than those that do not.
- It also showed that businesses taking strategic advice experienced major benefits for their business and those that remained open-minded about business advice got the best results.
- But a staggering 60% of companies in the South East shun expert advice!
If you are one of those businesses,you are clearly missing out on valuable profits.This has obvious implications on the longer term prospects for your business.
Life is very simple.If you don’t change what you do then you will not change the result that you achieve.
If you want to BOOST your profits? then let me show you how-
Contact me at Janette Whitney & Associates on 01403 733671
or visit www.whitneyassocs.co.uk
©Janette Whitney& Associates 2012.All rights reserved