It is staggering, and really sad, how many good businesses fail. Businesses that have a great product or service, have experts running them, and a team of genuine hard working people. Often when a business is failing the owners do one or more of the following:
- Nothing at all to change things.
Einstein defined insanity as doing the same thing over and over again and expecting a different result. Doing nothing is not going to change things – at least not for the better, and maybe for the worse.
- Work harder at what they do.
Working harder at making a product, selling more products or servicing more clients is again doing the same thing and expecting a different result. It is not addressing the underlying problem. Even a profitable business can have cashflow problems so increasing sales and profit might in fact exacerbate the cashflow problem
- Don’t seek or want help (or think they can’t afford help)
If a pipe breaks and your office starts flooding would you call a plumber? Then if your business is leaking cash and your business is starting to go out the backdoor why would you not call in an advisor that is experienced in sorting these problems out? It is false economics to believe you can fix the problem if you don’t have the skills – and if you had the skills you would have already fixed the problem. Pride and pigheadedness can be a curse.
- Blame the external environment
The external environment is something you live with – we all do – your customers, suppliers, competitors and financiers. Very few businesses can influence the external environment, just like they can’t influence the weather. No use blaming the external environment – work out how to live within it.
- Seek advice from the wrong people
Would you go to a gynaecologist about a heart condition? Then why do you go to tax accountant for instance for a business advisory problem. Tax accountants are great at what they do but they are experts at taking the information provided to them, interpreting and ensuring compliance with tax legislation. Usually tax accountant also work with information up to three months old. They may beable to give you basic advice on managing a business but this is not their specialty. Business advisors are great at what they do too – they help manage a business financially and coach the business owners understand and manage their business themselves, in a timely proactive manner.
Usually these struggling businesses have an excellent product, loyal customers, and loyal staff – what they don’t have is the ability to pick up on warning signs and initiate changes before it is too late.
Managing a business well takes a different skill set than the skill set needed to develop a business idea or product.
What Byronvale Advisors does when they are enlisted to help a business is complete a review of the business and establish where the business is now, how it got to this point and then what it needs to do to re-establish itself. We build a team of experts (yes sometimes tax accountants) across a number of diverse disciplines and industries to develop a specific solution for your business.
Byronvale Advisors have a range of tools that assist business owners repair their business, stop leakages, and make it ‘bulletproof’. We partner with the business so they learn how to manage their business without the need to become a financial expert. We don’t teach you how to be an accountant – we teach you how to manage your business. All our tools involve minimal time investment but give business owners proactive approaches to managing their business, increase their profitability, improve their cashflow, market their business and make their business more sustainable. At the end of an assignment we aim for the business to have the capability and capacity to manage their ongoing successful business.
If your business is struggling, take the first proactive step and contact Byronvale Advisors now and before it is too late.
Get up to four hours of expert advice at an initial discussion and it is obligation free.