Who Is It For?

We work with small medium enterprises (SME’s) that want to grow but have not succeeded. That may be because they:

  • Want to be more profitable and have run out of ideas
  • Realize they need advice and a business relationship
  • Realize they need someone to challenge them
  • Realize they need fresh input and skills they do not posses

Who is it not for?

We don’t cater to business owners  who:

  • Cannot accept outside help
  • Are unable or unwilling to invest in their business
  • Are unwilling to take a fresh look at their approach to their business
  • Are unwilling to review their abilities as the CEO

 

 What are the Characteristics of a Successful Business

Why Businesses Fail

Characteristics of successful businesses:

  • Sensibly financed
  • Strong cash position
  • Above-average profitability
  • Rapid growth in revenues
  • Attractive, market segments
  • Strong brand
  • Competes on non-price issues
  • Very close and responsive to customers
  • Seeks specialist/leadership image with superior offerings
  • Well managed with high-grade staff & good people-management

Now look at unsuccessful businesses…

Basic reasons why businesses fail

Finance Markets/Sales Management Products Operations
Underestimating start-up costs Misjudging the size or growth of the overall market Lack of relevant sectorial experience Inability to supply profitably to required price Under-investment in equipment etc.
Insufficient funds or access to top-up finance Overoptimistic estimates of market penetration & shares Insufficient functional breadth Problems with maintaining quality standards Excessive overheads (relative to scale of operations)
Wrong mix of funds (e.g. too much debt and gearing too high) Delays in securing or developing distribution channels Unresolved differences of opinion Restricted range of offerings High operational costs and/or low productivity
Over reliance on trade credit (receivables) Underestimating the strength of competitors Unreal expectations Lack of innovation (me-tooofferings) Poor capacity utilization
Mistaking profit for cash flow Misreading customer requirements No formal or clear structures Problems sourcing supplies Inadequate physical distribution
Overoptimistic projections or overtrading Lack of promotion & customer awareness Ineffective financial & managerial control systems Offerings out of line with customer needs Inappropriate business location
Unable to withstand interest rate increases Inability to handle an economic slowdown      

 

Most business failure occurs small businesses fail because of mismanagement. According to Statistics Canada, (Failing Concerns: Business Bankruptcy in Canada, 1997), most businesses fail because of weak general management, weak financial management, or weak marketing capabilities.

It’s not the business conditions. Simply because the owner understands the technical aspects of his profession does not enable him to know how to run and grow a business

Business development skills are as important as the professional knowledge held by most business owners about their trade and profession.