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Why Small Businesses Fail by Biz Coach C
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Why Small Businesses Fail by Biz Coach C

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Why do most small buinesses fail??

Why do most small buinesses fail??
Ideas for your business to suceed and grow.

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    Why Small Businesses Fail by Biz Coach C Why Small Businesses Fail by Biz Coach C Presentation Transcript

    • Why Small Business Fail and The Business Secrets I Have Learned Biz Coach Plus Duane Hoversten [email_address] 320-282-1677 Biz Coach Plus Biz Coach Plus
    • Business Costs Small business faces a gauntlet of obstacles. For details on reprint usage or to purchase original art or prints, Email Pritchett Business Cartoons | Site Map | Home Page | Search © John Pritchett Biz Coach Plus
    • The Existing Landscape Biz Coach Plus
    • Credit to Others
          • Emyth Revisited by Micheal Gerber
      Biz Coach Plus
    • Failure of Businesses 50% of New Businesses don’t last 18 months 70% of New Businesses don’t last 5 years Most Small Business NEVER reach their Potential!!! Why?? We will tell you…. Biz Coach Plus
    • Realty The business is a direct reflection of the owner..
      • If your thinking is sloppy - your business will be sloppy
      • If you are disorganized, your business will be disorganized.
      • If you are greedy, your employees will be greedy.
      • If you lack direction on how to improve your company, your company will not improve
      • If you are not accountable, no one in the company will be
      Biz Coach Plus
    • Small Business Owners
      • 1. Owners work very hard for their Money they earn
      • 2. Most owners are not doing the right work in their Companies
      • 3. Small Businesses have Unpredictability and High Frustration
      • 4. Information abounds – Yet it is not Utilized.
      • 5. Most Small Businesses could make a lot more money
      Biz Coach Plus
    • Most Small Businesses Fail to Maximize their Business and Many Even Fail!! I am going to tell you how to fix these Businesses. Insight into Small Business Biz Coach Plus
    • Fatal Assumption
      • If I understand the technical work of a business, I understand the business that does technical work.
      • If I am an Electrician, I can run an electrical business.
      Biz Coach Plus
    • E Myth Model (Concept by Michael Gerber)
        • Look at the business itself as a product competing with other businesses.
        • Do NOT look at what’s done in the business but HOW it is done.
        • Biz Coach Plus- Create Accountability for the Owner
      McDonald’s Domino’s Biz Coach Plus
    • Secret #1
      • Owners are typically not doing the right work in their business!!
      Biz Coach Plus
    • E Myth Personalities (Emyth by Michael Gerber)
      • You have heard that small business owners need to wear many hats – BUT seldom do they!!!
      The best personality does not always surface and win . Biz Coach Plus
    • The Technician
      • Is a doer
      • If you want it done right, do it yourself
      • Happiest when working
      • Knows you can’t do two things at once
      • Likes to control flow of work
      • Thinking isn’t work…. And is unproductive
      Biz Coach Plus
    • The Entrepreneur (Leader-Visionary)
      • Turns trivial conditions into opportunities
      • The Dreamer and Catalyst for Change
      • Needs control
      • Lives in the world of “what if” and “if when”
      • Creates Havoc because of need for change
      • People are problems that get in the way of his dream
      Biz Coach Plus
    • The Manager
      • Pragmatic
      • Craves order
      • Clings to status quo
      • Sees problems not opportunities
      • Creates neat rows of widgets that entrepreneur creates
      • Cleans up Entrepreneur’s Mess
      Biz Coach Plus
    • Secret #2
      • Owners work in their Business and Hardly Ever work On their Business
      • They must have a Strategic plan!!
      Biz Coach Plus
    • Set Strategic Areas for Your Busines
      • 1. Organizational Strategy
      • 2. Management Strategy
      • 3. People Strategy
      • 4. Marketing Strategy
      • 5. Operations Strategy
      Business Plan with emphasis on Strategies and Systems... AND Accountability Biz Coach Plus
    • Secret #3- Owners Don’t Manage or Lead Owner/Manager must act in the business as he wants his/her people to act. “ Walk the Talk” Many Owners are Controlling.. Some Simply Abdicate Management.. Biz Coach Plus
    • What should a do to Manage? 7 Focus Area of Managment 1. Goal Setting – daily – weekly – monthly- yearly 2. Leadership - daily 3. Money Management – daily (invoicing – AR) 4. Marketing Direction and Follow up 5. HR Oversight 6. Operations Systems Oversight 7. Networking – Customers – Vendors - Community Biz Coach Plus
    • Secret #4 – Need for Systems
      • There are few written Systems in the Business. Thus there is chaos or
      • simply lost time waiting for the owner to direct activity.
      • Especially Financial Systems!!!!
      Biz Coach Plus
    • Business Format Franchise
      • “ Proprietary Way of Doing Business that differentiates every Extra-ordinary business from one of its competitors.”
      • How do we build businesses to make that idea work for us?
      • How do we make businesses work that works predictably and profitably every day?
      • How do we get business owners in control of their business rather than the businesses controlling the owner/manager???
      MAJOR QUESTIONS ARE: Biz Coach Plus
    • Create Systems for every Part of Your Business… to make Your Business Turnkey
      • The Franchise Phenomena
      • McDonalds - The most successful small Business in the world.
      Biz Coach Plus
    • The Business Model
      • The model must be consistent and create a consistent Value to Customers, Vendors, and Employees, and other stake holders.
      • The model will be operated by people of the lowest skill possible
      • The model will stand out as a place of order
      • All work will be documented by operation manuals
      • The model will provide uniform customer service
      Biz Coach Plus
    • Business Systems/Procedures-1
      • Financial
        • 100 Billing Systems & Collections
        • 110 Budgeting System
        • 120 Cash Flow Measurement
        • 130 Financial Statements
        • 140 Inventory Control System
        • 150 Pricing System
        • 170 Purchasing System
        • 180 Tax Preparation
        • 190 Vendor Selection
      Biz Coach Plus
    • Business Area & Systems Worksheet
      • Business Areas and Systems Work Sheet
      • Business Area:___________________________System:___________________________
      • Procedures/Activity:
      • 1.___________________________________________________________
      • Who:________________________________________________________
      • When:_______________________________________________________
      • Where:______________________________________________________
      • Why:________________________________________________________
      • What:_______________________________________________________
      • _______________________________________________________
      • _______________________________________________________
      Biz Coach Plus
    • Secret #5 – Get your Business to a Mature Stage
      • Infancy
      • Adolescent
      • Mature
      • We’ll Talk about
      • each Stage
      Biz Coach Plus
    • Infancy stage of Business
      • Technician Stage of Business
      • Worked 10-15 hours a day
      • Work came hot and heavy.
      • Worked each day on who screamed
      • loudest.
      • Always behind
      • Not enough time to bill - Vendors calling for pay
      • House hold has no money -
      • Spouses fighting and talking of divorce
      Biz Coach Plus
    • Adolescence Stage
      • Stage where business has to get help
        • Company hires employees but owner still works and doesn’t transition to management
        • More bills and payroll!!
        • More yelling …
        • Problems got worse not better...
      Biz Coach Plus
      • Companies who:
      • Have Systems in Place
      • Are Pro Active!!
      • Have the Right People doing the Right Things
      • Are Turnkey
      Maturity Stage Biz Coach Plus
    • Introduce Wayne
      • Real Person
      • Landscaping Business
      • Not making much money
      • Two Years behind with Tax Returns
      • No Records – Just a Shoe Box
      • Wore out from the Grind
      • Ready to Quit
      Biz Coach Plus
    • We Created a Turn key Business for Wayne
      • Created goals
      • Created Work orders to start jobs
      • Created Paperwork to track work on jobs
      • Enter into Job Costing on Peachtree
      • Employee Manual
      • Created Organization Structure
      • Hired a bookkeeper
      • Created schedules
      • Did last two years taxes
      Biz Coach Plus
    • Wayne now Believes!!!
      • Runs the Business – not the Business running him.
      • Has upped his net worth 3 times in two years.
      • His a High 6 figure Personal/Company Income
      Biz Coach Plus
    • Secret #6 Your Business in Not Your Life!!!
      • A Business Owner must understand that the primary purpose of a business is that it serve him/her not that he/she serves the business.
      Work on the Business Not in the Business.. Biz Coach Plus
    • Secret #6 Goal Setting Daily Weekly and Monthly and Yearly are Critical.. Measurement of Success is not Possible without Goals. Do this with Strategically – Strategies – Goals - Tasks Biz Coach Plus
    • Secret #7- Accountability You Need a Mentor, Mentor Network and Education.. 1. For Accountability 2. For Bouncing Ideas 3. For Creating a Sound 4. Sound Footing for your Ideas Biz Coach Plus
    • Work on Your Business Find a Mentor or Coach.
      • Your job(as owner) is to prepare yourself and your business for growth.
      • Work on your business as if you had 5,000 others exactly like it.
      • Treat your business as the product.
      • Create expert systems to run the business.
      • Train people to run the systems
      Biz Coach Plus
    • Secret #8- Get in the Right Business
      • If you are doing what you did 10 years ago.. Its probably Wrong!!
      • Must have a Business that will attract Customers from 100 Plus Miles Away
      Biz Coach Plus
    • Look at the Facts
      • Understand our Business Environment
      • Do some Basic Thinking/Research
      • Example: Scrapbooking
        • Town of 700 people and draw of another 500 =1200
        • ½ are women – leaves 600 potential customer
        • Competing with 2 other Larger Cities –Cuts base to 200
        • Only 30% of women do Scrapbooking – 60 Customers
        • Average Scrap booker does $200 year – total of $12,000 in base sales
      Biz Coach Plus
    • Secret #8 – Be Customer Focused
      • The customer is the only person qualified to specify what their needs, what features are required of our products/services, how do customers rate our products/services versus our competitors and how can we keep our customers satisfied?
      • Posted By: iSixSigma
      Biz Coach Plus
    • Secret #9 -Be Part of a Networking Group…
      • What is the biggest problem in your Businesses???
      • We will try a
      • Networking group
      • Later in our
      • Meeting..
      Biz Coach Plus
    • Secret #10 – Market Your Business Every Day!! What is the best Marketing for your Business? – Word of Mouth Use at Least 3 Tools for Marketing. 1. Web site 2. Newspaper 3. Referral Program 4. Signs on Vehicles Biz Coach Plus
    • Summary
      • What can you do today?????
      • Buy Books
        • Emyth Revisited by Michael Gerber
        • Rich Dad Poor Dad by Robert T. Kiyosaki
        • Built to Last by Jim Collins and Jerry Porras
      • Set Goals Strategically!!
      • Setup Systems in Your Business
      • Join a Business Networking Group
      • Get Marketing
      • Get Coach for Accountability
      Biz Coach Plus
    • Followup
      • Want Group Networking from Biz Coach Plus?
      • Want Coaching from Biz Coach Plus??
      • Want a Strategic Plan Set Up??
      • Want a Business Evaluation??
      • Biz Coach Plus
        • Phone: 320-282-1677
        • Email: [email_address]
        • Website: www.BizCoachPlus.com
      Biz Coach Plus