Although businesses fail for a multitude of reasons, the underlying issues are surprisingly common.Im going to briefly address what, in my experience, are the five deadly sins of the start-up entrepreneur:
FAILURE TO SEE THE BIGGER PICTURE
If you have your head down doing everything from sales and marketing to accounting, who has the overview required to steer the business on the right path?
It is crucial that you work on the business – stepping back from the day to day to drive it forward.
To do that, you must delegate wherever possible the tasks that can be carried out by others – if you encourage, empower and motivate them the results will astound you.
FAILURE TO PLAN
FAILURE TO MEASURE
Too many business owners have little or no idea what the key numbers in their operation are.
Successful businesses measure everything that moves and even things that don’t.
IGNORING THE CASH FLOW
Whatever happens, cash will always be king.
When money is tight and business may not be as abundant as it once was, conserving your cash resources is critical.
Keep an eye on expenditure and watch credit control carefully.
A wise man once told me that the definition of business insanity is to do the same thing this year as you did last year and expect a different result. He was right.
Successful businesses innovate and change all the time – those that don’t are simply left behind.
Interesting summary. In reality there should be more, such as failure to implement