Business Management

Our friend here at the right, is over his head and has no idea what to do next to get things moving forward with his business.  He is not alone.  Do you realize most businesses start with a dream?  Then reality sets in and money is spent and you are not committed to your dream.

Someone once told me he wanted to start a business because he thought it would be a good idea and he estimated he could make a pretty good living at it.  The business lasted one year and he went bankrupt.  So what happened?  EVERYTHING!  Wrong business, not enough knowledge about the business, poor planning and lack of dedication to the business.  Keep in mind that the business runs you, you only manage them.  If you manage them right, you survive for one more day.  Isn't that life in general, just getting through to the next day?  Someone once said that life is living for the moment, never in the past nor future.  What happens right now at this time is all that matters.  But you need to learn from the past and plan for the future.  In project management, I tell my clients that you plan the work then work the plan.  For without a plan you have nothing.

I have never talked to any business person who did not want to be successful.  Some just haven't developed the necessary skills to accomplish this yet.  Over time skills are acquired, but who has this time to spend when each lesson, each day costs you money.  Do I hire people or try to do the work myself?  How do I spend my capital?  What comes first?  Questions upon questions need to be asked and answered before you talk one more step.

Why are businesses failing?  Can it be blamed on the current economy?  If you revert to your business history books, you will see that most small businesses started up when the economy was bad.  Look at the fall of the DOT COMS and what happened then.  Here are some reason businesses fail:

• You Are in the Wrong Business.
  • No Demand for What You Do or Sell
  • Wrong Location (Location, Location, Location)
• Lack of Business Sense
  • Not Enough Knowledge
  • Not Knowing the Business of Business
  • Not Selling Yourself but Selling the Business
• Poor Management
  • Poor People Skills
  • Hiring the Wrong People
  • Too Much/Little Inventory
  • Antiquated Equipment
  • Not Watching Your Profit/Loss
  • Waiting Too Long Before Getting Help
  • Charging Too Much or Too Little