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Key business advise still being ignored by new businesses?

Key business advise still being ignored by new businesses?


The small business failure rate statistics have not changed in decades, the reasons for failure have not changed either. So why do so many still fail?

 

This article published by Eliza Borrello by the ABC, despite its click bait headline, drives home so many key points about new business mentality, that despite the failure rates and the reasons for them, new business owners still think they can do without this, what is it?

 

Planning and research!

 

"Every battle is won or lost before it is ever fought" The Art of War, Sun Tzu

  

Or, Most businesses succeed or fail before they ever open

 

In the article Business Coach Brian Childs has some memorable quotes of his own, which are summarised below:

 

Business "is about money"

 

"Money coming in must be greater than money going out"

 

"If you have not saved any money , do not go into business"

"Because you've just demonstrated to yourself you lack the financial discipline"

 

Spend 160 hours researching the viability of your business plan and then 40 hours writing it

 

"Is there a need in the market for the idea? Because all business viability hinges off someone buying something for more than what it costs to make it."

 

Factor in a 20% buffer on costs

 

"If business is about money, you need to understand the language of business, which is accounting"

 

"If you're going to understand accounting, you've got to understand finance, so therefore you should commit to obtaining some financial literacy"

 

"Go to any bookshop and buy any book on business finance and read it."

 

Once you have done all of this and are open for business…

 

"And if you're forced to spend more than 44 hours a week there, there's something wrong."

 

This is the most clear and concise business advice I have read in years.

 

We have heard it all before, yet this remains so true.

 

If you fail to plan, plan to fail. The statistics are you your side.

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