How to Kill Your Small Business or Startup

Here are just some of the fastest ways to kill your small business or startup:

- Building something no one wants or that you can’t sell at a profit 

- Inadequate business planning 

- Lack of clarity or focus

- Hiring poorly

- Failure to ask for help

- Ignoring social media

- Lack of appropriate financial accounting and internal control practices

- Spending too much money and/or being underfunded

Unless killing your dreams is actually your goal… you must be asking “How can I avoid these things??”… read on 

1) Are you trying to sell something people don’t need or aren’t willing to pay (enough) for?

Before you ever start a business... the first thing you have to do is extensive early market research and testing. If, in your product or service's earliest stages, you aren't seeing conclusive proof that people want what you intend to offer, and at a price point you can profit at, it's best to keep working on it before investing in a full launch.

2) How comprehensive and complete is your business plan?

Ever heard the saying... ‘a failure to plan is a plan to fail’? When it comes to a comprehensive business plan... this is absolutely true. Many new entrepreneurs fail to appreciate the need to engage in a thorough business plan process. They ‘fly by the seat of their pants’ and in a lot of cases... have no idea what they don’t know. Until... they find themselves in a bind later down the line. Planning ahead for every conceivable scenario IN ADVANCE and then continuing to use your business plan as an active tool to stay focused and on course is absolutely vital to long term success. 

3) How clear is your vision and how focused are you on your goals?

This goes back to your business plan which is vital... but it’s more than that. It’s the ‘bigger picture’. It’s ‘your why’. It’s the vision you had when you started. But did you ever take the time to really flesh out every aspect of your vision? Did you set clear and attainable goals to start? Have you updated your goals as you have achieved them? If you haven’t done this work - you will never realize your full potential and it is likely that you will fail in trying. 

4) Hiring the wrong people. 

Many new entrepreneurs have no idea who to hire or how to go about it. Many have never hired or managed others before. This is a whole area of expertise that you will have to become familiar with as a business owner. But don’t be disheartened... there’s a science to it. It starts, though, with clearly identifying the role/job description you need to fill. Then there is an important step many businesses fail to take - which is to clearly identify their company culture (or begin to build one) which is based on your core values and your vision - and then figuring out what type(s) of individuals best ‘fit’ into your culture and your vision. Before you can even begin looking for someone to join your team... you have to know exactly what you’re looking for. (Yay! More planning!)

5) Failing to ask for HELP! 

Oh this is one of my favorites! Look around you... small businesses make up the vast majority of our commerce and support our amazing American economy. Small business, while it is a daunting adventure at the beginning... is not a new thing and there are a wealth of professionals out there just waiting to assist you. ((PICK ME!)) There are also networking groups and professional development resources (free and paid) that you can take advantage of. Do not go it alone... tap into the knowledge base of people that inspire you. Stay connected to people and groups that will educate, encourage and help hold you accountable. There is absolutely no need to try to reinvent the wheel as a business owner. 

6) Social media - do I have to?!

Yes. You have to. I admit... I have been a little behind the curve myself. It’s a bit daunting but it is the way we connect in this modern age. Spend the time. Get acquainted with it. Learn about the various forums, formats, tools... and get started. If you’re truly overwhelmed or unable to wade in on your own, there are plenty of people and services out there that are educating business owners on the subject (again, free and paid). Find resources, make a plan, get busy. CONNECT. 

7) Financial accounting and internal controls. 

Unless you are an accountant or financial planner, it is likely that this topic does not excite you. That’s quite alright but it doesn’t mean it can be put on the back burner for ‘when I’m making money’. Part of your business plan will be financial goals. In order to meet those goals you will need a means by which to account and report your current status and be able to compare it - real time - and proactively to your goals. There are a number of other very important reasons why you MUST have a proper system of accounting and internal controls... such as tax planning, avoiding fraud and theft, preparing for future capital funding needs, etc. Suffice it to say, you MUST have a proper system in place to assure your success. 

8) Spending too much money or being under funded. 

This goes back to both the business plan as well as the need for proper accounting and internal controls. Without these things in place at the very beginning... you are almost certain to over spend or be under funded. Or both. When it comes to money and business, you really have to be a proactive planner and a good steward. Think of money, particularly in the beginning, as a vital resource for your success. You have to spend it in order to make it. You need to know how much you need, how much you have, where the rest it is coming from, and how you will ultimately pay back borrows funds. Then you need a budget to adhere to so that you remain solvent while your venture grows. With the right strategies in place and given proper attention to executing those strategies... your business will grow and so will your bottom line. 

Contact us today to discuss sBs Growth Coaching™ and Consulting options for help in developing a strategy to avoid the common pitfalls of startups and small businesses. We can help you chart a course for success that will be sustainable and will grow as your business grows. Don’t go it alone.

https://www.s-b-services.com/get-started

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