I’m thrilled to tell you that now that the NBA season is over, my husband Will is BACK! It’s great news for our family, but even better news for my business. That’s because I have to say it took a whole lot of planning to juggle my business, my home and my family these last few weeks. Thankfully, I have great support at work that keeps my small business going smoothly.
Do you have support or a plan in place for your business? Do you have talented people by your side? Can you count on someone to help you out when you might not be there? These are some of the problems small business owners face and why 80% of businesses go out of business within five years.
In the next couple of weeks, I want to share some of the pitfalls I see some of my small business clients encounter. Here are some of the top problems that could be totally preventable:
FAILURE TO PLAN – When DM Accounting looks at client books, we look at money coming into the business currently, but we also take into account future profits and losses (P & L Statement). Failure to look beyond today and plan for the future is a major reason why businesses fail. If you don’t do it already, have your accountant create a P & L Statement for you at least every quarter and then review it together. If your accountant or bookkeeper doesn’t have time, then call us immediately.
GOOD PEOPLE TO RELY ON – Most small business owners complain that the best and brightest in the field tend to work for larger companies or corporations. That doesn’t have to be the case. We have extremely qualified bookkeepers on staff and three happen to be CPA’s. When my husband was traveling for work, our DM Accounting team members stepped up to the plate to help. Thank you!
TOP HEAVY – When I go out of town, my employees don’t have to stop what they were doing and wait for my reply to finish or even start a job. We have an approval system in place for those times I’m not around. Most small businesses turn out to be family owned and when the owner of the business or top person on the tier is out of town, business stops completely.
HIGH TURNOVER – No matter if you’re the owner of a small, medium or large business, turnover is almost impossible to stop, however, you can keep it under control. Most business owners spend so much time and money training a talented person, only to have them leave. At DM Accounting, our team tends to stay together because we offer a great work environment, benefits and we’re just a fun place to work!
LACK OF MARKETING – Many small businesses skimp on advertising and marketing. This results in not enough sales and an end to an otherwise successful business. If you’re a small business owner, you don’t have to have a million dollar budget to get your company’s name out there. Investing in a good website, hosting events and joining organizations could be just the boost your business requires.
These are the top five of ten reasons why I see small business owners fail. There are five more I think are crucial, so stay tuned until next week and I’ll share the rest.
Good luck and have a great week!