WHY SMALL BUSINESSES DON’T WORK
I have had further thoughts ref – why most small businesses do not succeed to their full potential.
I now believe 80%+ comes down to this one fact.
In business there are three sections, or areas of focus.
Sales & Marketing
Most small businesses spend 95% of their time operationally. In other words doing the work of the business. And this is the biggest problem with most small businesses. Doing the work will NEVER make you successful. Working on your business to grow it will and yet most small business owners:
- Don’t have a strategy
- Have no idea how to write a business plan
- Have little understanding of marketing
- Have never attended any sales training
- Have little understanding of finance
- Can’t read a set of accounts
- Have no knowledge of their marketing numbers
- Do not quantifiy their sales and marketing
- Do not know how profitable their business is
- Don’t have monthly management accounts
- Don’t know how to write copy
- Hate picking up the phone to make a sales call
- Are poor at networking
- Hate speaking in public
- Don’t have a cashflow forecast
Is there any surprise that they don’t succeed? The questions are:
- Who is doing the marketing work
- Who is managing the financial side of the business
- Who is working on the business to ensure its growth?
The answer is often, no one.
If there is someone then it is usually someone who is not highly skilled and who does it in their spare time.
So what is the message? Spend 1/3 of your time operationally, 1/3 of your time working on your finance and a 1/3 of your time on sales and marketing.
Mmmmm! Something to think about.