One Unpopular Reason Why Businesses Fail: More Planning Less Action
Everywhere on the net reasons have been alluded to why businesses fail after a couple of years or even months. We see the most popular reason as insufficient capital. Why, businesses do not need bucket loads of cash to survive the first five years do they?
Cash, good and helpful as it may seem to businesses, is dangerous for a startup business. With the danger of sending the wrong signal to readers I dare say that startups that have all the cash they need run the risk of becoming less creative and more unable to adapt to swift changes and negative circumstances in the business environment.
If then a business can survive with less cash than it needs in the beginning what can get it folded up sooner than the owners think?
I have a feeling to start with the most popular reasons why businesses fail. However I AM FORCED to leave out those and write on something so undermined and overlooked that it actually thrives on that neglect.
More Planning Less Action
On a cool evening few days ago, drawing out my business diary I was amazed at the flurry of planning activities I had carried out yet nothing concrete was done. I made a decision to hire there and then and start doing something towards getting my magazine published. That led me to drawing up a month long action plan (more planning, I guess?) to be viewed and reviewed every morning. Taking those little steps helped me on my way. I now actually do something each day that adds towards accomplishing my goal.
The amount of information available today to the intending entrepreneur has become more of a threat as he immerses himself and soaks as much as possible. While he does that he ends up unsure of what to do to solve his problems. He hides behind endless planning instead of taking actions.
The advantage of a small business is speed. Big businesses are the ones known for prolonged planning. Small businesses and startups do not have that luxury. Cash inflow has to come as fast as possible to keep the business solvent.
And you know one thing? While I planned I had bills to pay, my office rent was piling and of course time, the most precious asset, was flying by.
Plan today by all means but the most important thing is to take a step. Don’t plan when you don’t have market data. Actually going in there and doing business will give you a more realistic basis to build your business plan. Otherwise if you are not yet there in the market it will amount to building castles in the air if you plan with theoretical and unreliable data.
If then a business can survive with less cash than it needs in the beginning what can get it folded up sooner than the owners think?
I have a feeling to start with the most popular reasons why businesses fail. However I AM FORCED to leave out those and write on something so undermined and overlooked that it actually thrives on that neglect.
More Planning Less Action
Refer to an article I wrote earlier Planning to Win in Business: Planning Till Eternity. On the average many intending entrepreneurs today can easily get so much of what they need to know to start a business. That is not supposed to be a problem. The problem becomes the fact that because of the advice and information overload they plan too much and hesitate to put vital lessons in action.
Currently I am starting a business magazine publication. I have read volumes of materials on hiring and training of sales executives. I have drawn up sales projections, torn them up and redrawn them. I interviewed prospective candidates for marketing and sales jobs for weeks and yet didn’t actually start something.On a cool evening few days ago, drawing out my business diary I was amazed at the flurry of planning activities I had carried out yet nothing concrete was done. I made a decision to hire there and then and start doing something towards getting my magazine published. That led me to drawing up a month long action plan (more planning, I guess?) to be viewed and reviewed every morning. Taking those little steps helped me on my way. I now actually do something each day that adds towards accomplishing my goal.
The amount of information available today to the intending entrepreneur has become more of a threat as he immerses himself and soaks as much as possible. While he does that he ends up unsure of what to do to solve his problems. He hides behind endless planning instead of taking actions.
The advantage of a small business is speed. Big businesses are the ones known for prolonged planning. Small businesses and startups do not have that luxury. Cash inflow has to come as fast as possible to keep the business solvent.
And you know one thing? While I planned I had bills to pay, my office rent was piling and of course time, the most precious asset, was flying by.
Plan today by all means but the most important thing is to take a step. Don’t plan when you don’t have market data. Actually going in there and doing business will give you a more realistic basis to build your business plan. Otherwise if you are not yet there in the market it will amount to building castles in the air if you plan with theoretical and unreliable data.
The Power to Make More Profits
A complete report on how to increase your business profits by 100%
- How to increase frequency of repurchase by your customers.
- One secret that will fetch you 100 more customers under one week
- Create avenues for customers to sell for you.
- The Magic of Referrals.
- Power of public functions and places
No comments:
Post a Comment