Whats wrong with new business start-ups? Too many fail.

The failure rate for new business start-ups is very high, especially over a ten year time line. The actual numbers are irrelevant as everyone believes, as they should, that they will be the exception.

Long term success, great profitability and a steady growth and development curve, that’s what every new start up business owner wants and believes he will achieve. Hallalujah!

Optimism is a terrific potion and drives men to perform well beyond their normal expectations and this is good, but in addition we need some specific skills to prosper ad remain successful.

What I do know is that successful business is not just about having a terrific new idea or an excellent skill, or a wonderful service. These are all very important but in the end success is usually  as much about knowing the art and science of how to run and manage a business as it is having a terrific product or service.

There must be a well thought out, researched and strategized business plan as it is your map your guide.

The cash flow proforma based on available and committed capital should be adequate to support the intended growth and development and looked at daily to determine how you are doing and what adjustments need to be made if you are off target.

The daily key indicators must be monitored like the heart beat of a patient in critical care…constantly.

Incentive reward systems must be installed and monitored to assure high productivity.

The operation must be smoothly operating, the finance department actively reporting, monitoring and tracking, daily, weekly monthly numbers and reports.

The sales and marketing plan must be written, launched, tracked and monitored carefully, making certain you are getting the results you intended and need.

Employees must be trained to do their job and cross trained to do other jobs. A career path must be established and explained to the employees.

Reviews, training and incentives, the big three, must be religiously committed to. Reviews should occur at least every 6 months and should be positive experiences and a growth opportunity for both manager and employee.

All this and more must be implemented, tracked,  monitored and managed making appropriate changes and adjustments along the way.

A flat management system and philosophy should be the chosen path.

If you do not have all the components itemized above and the strategies and plans required to achieve success, the risk of failure skyrockets.

If you have done all this you will have an opportunity to reach your goals safely and soundly.

If you do not have this technology under control, get help now before its too late. Do not sacrifice your potential and opportunity for success by failing to provide effective business practices. With them you will succeed. It’s really that simple.

What is different between an established business and a new start up is the opportunity to start correctly before losing strategies are built into your operation resulting in lost capital, low sales, inadequate cash flow and non existent profit, Once the mistakes are realized and the cash is gone, correcting and implementing an effective plan is even more difficult. The start up has its capital resource and has a choice to either develop appropriate business organization, or overlook the requirement and focus just on production or service, building the business in the best way he knows how.

Do not allow yourself to become a statistic, one more business that produces a quality product or delivers a quality service but fails before it reached its full potential, because the owner failed to install the appropriate business systems required for a successful emergence.