Quite rightly, one of your highest priorities should be to protect your investment and nurture it for long enough to build, from the proceeds of your ongoing business endeavours, a strong asset base to support your future plans.
In order to protect your investment, you need to develop a fundamental understanding as to why SME businesses often fail to meet their owner's initial expectations, and why many businesses actually fail.
The list of reasons for failure is long, but the more significant factors include;
- lack of a cohesive strategy for continuous improvement and innovation
- lack of systems for business accounting and control of business expenses
- lack of understanding of working capital needs and cash flow management
- lack of general business acumen and core business management skills
- lack of understanding of the market demand for the product or service offered
- lack of understanding of the value of family and other support mechanisms
- lack of well developed negotiation, influencing and sales skills
- lack of understanding of the importance of choice of location to the business
- lack of ability to handle the challenges of growing the business
- lack of focus, energy and persistence in the face of all types of challenges and
- lack of acceptance of personal responsibility for the success of the business.
Looking at this somewhat truncated list, it is easy to see that running and operating a successful business requires a lot of skill and effort, and it is not for the faint of heart.
Another key stepping stone on the road to protecting your investment of capital and time into your business is to learn to work on your business, as much, if not more than working in the business.
To this end, the ability to focus your mind and your best energy, on the areas where they will have the greatest effect, is extremely important.
Many business owners try to do everything themselves and are reluctant to rely on others, be they employees, contractors, outsourced service providers, or other business professionals such as accountants, lawyers, and business consultants, to perform roles for which these people are far better qualified.
Do you have a clear picture of where your strengths lie? If not, perhaps it is time for the good of your business, to explore who you are, and in doing so, develop a clear understanding of your major strengths and identify the areas in which you face strong challenges.
People often say that business is not rocket science, however what they generally neglect to say, is that all businesses require someone powered by rocket fuel, in order to get lift off, move into orbit, and stay afloat for long enough to enjoy the ride and the view, from on high.
As a business owner, that person needs to be you. Are you up to the challenge?
