Read this if you want the number one solution to any of the big business challenges you may be experiencing in the list below. The problem is, a chain is always as strong as its weakest link. In business, so many go through so many challenges because those weak links is the ones that destroy you, and not your strengths.
We spend most of our energy on the areas that we feel most skilled and powerful in. People do what works, we do what makes us feel good, what we feel confident in, and avoid the things we feel in-confident in. So what is it that creates so many challenges for small business, and what is the #1 solution to the problem?
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From all the research ever done on business success and failure, top business analysts found that poor management is the main reason why small business are experiencing so many challenges and even failing. If you compare all the challenges of we experience as business owners, you will recognize that almost every single one of them, is a financial or money related challenge.
Tony Robins stated, there is only two things that limits a business -
One is the owners' skill, or the owners' psychology.
Most of the challenges we experience in business are merely symptoms of different causes. There are many reasons why business find themselves in financial distress, struggling, and even failure. But the largest single cause of small business challenges, except for a few external reasons like sudden illness, legal challenges, natural disasters or unfavorable economic conditions, is "financial management" failure. (I'm not talking about accounting)
Take for instance the Signs of poor financial performance and the 42 Causes Responsible for financial distress in business
Let's look at the top challenges and causes of distress in business. The numbers are shocking.
Small business profitability statistics
Fact 1:
83% of businesses are not profitable (Study by the SBA)
Fact 2:
60% are running at breakeven, living from month to month
Fact 3:
Only 17% of small businesses are profitable
Fact 4:
23% are currently losing money and failing miserably
Key challenges facing most small businesses
Divorce rate are between 43% and 48% and rising. Almost 50%.
39% NOT confident they can retire. (Paycheck Small Business Survey)
50% of small businesses survive for at least five years.(Fundera)
83% fail due to cash flow problems Symptoms. (Fundera)
The average business only grow by 4% annually. (Source: Sageworks)
Only 6 % ever reach $5 million in annual sales. (Source: U.S. Census Bureau)
86.3% of small business owners earn an annual salary of less than $100,000. (Fundera)
19% of small businesses fail because of their competition.
(CBInsights)
14% of small businesses fail because of poor marketing.
(CBInsights)
23% of small businesses fail because they don’t have the right team (Business Insider)
25% of entrepreneurs feel moderately burned out, while 3% feel strongly burned out.
Entrepreneurs biggest challenge - affording increasing health care. (Commonwealth Fund)
57% of entrepreneurs hate financials
The Average Small business only have 27 days of cash reserves
82% of business owners do not know the important financial numbers in their business.
Only 18% have access to real-time vital performance data and numbers to effectively analyze and manage the business
50% don’t even have the basic accounting, stock system in place
About 50% of businesses that failed was profitable the day they closed down.
Only 20% of owners said that they think they know enough about "business finance" to be able to make the right decisions.
50% of owners never even bother to look at the business year-end financial statements.
Only 1 in 10 companies will achieve
sustained, profitable growth. (Profit from the core)
67% small business reported "lack of capital" as a top challenge
Time management, second most common struggle for 14% of business owners
Employee recruitment & retention second most common struggle for 19% of business owners
The #1 solution to your biggest challenges
Most businesses challenges and even failure are because they failed to anticipate what is coming. Anticipation is the ultimate advantage in business and in life. Anticipation is to know the road ahead. If you know the road ahead, you have the ultimate advantage over every one else.
If you fail to anticipate what is coming, no matter how smart you are, you're going to end up "reacting" to the things (challenges) that is happening in your business. And if you start "reacting" in your business, your business will pay the ultimate price, and in the business world that means death, death of the business.
You must know the road ahead. Why? Because if you know the road ahead, you can anticipate what is coming, and you can take action early to prevent something bad from happening in your business, or to take advantage of all the big business opportunities out there. But if you find your self "reacting" to circumstances in your business, I can guarantee you that you will eventually fail in business.
Now how many of you as business owners hate Accounting? Unfortunately, even if you hate it, how many times have you thought you financial numbers or your cash flow meant one thing or something else, and the reality really hurt you at the time. Most businesses fail because people don't like accounting and finance than anything else. Now I am not saying you must become an accountant.
But I am saying you need to know enough to manage your finances. I's saying, understanding the financial information to make sound business decisions, and using it to anticipate the future. Because you are still the owner of the business, and you still have to lead and make the important decisions. And if you don't, you will become part of the 90 % statists that fail and lose everything.
Financial anticipation is a skill that you have to get now:
Financial anticipation is a skill that you have to get now. If you don't, we can help you with our Financial Blueprint. Financial Blueprint is a “done for you” monthly financial analysis, forecasting, and reporting service for busy entrepreneurs. It turns your business financial information into insight, so you can make decisions based on facts, and not a gut feeling.
Financial Blueprint turn "non-financial" entrepreneurs into instant "Financial Wizards", and give you the ability to anticipate what will happen in the coming days, weeks and months, even years. It answers every question accounting and accountants can’t. This allows you to take early action to prevent any risk and losses or bigger problems down the line. It also allows you to take full advantage of all the opportunities.
Every month we securely analyze your latest financial info and provide you with an updated easy to read financial report. The report includes a business valuation, sales, profitability, cost, cash flow, and performance analysis to name only a few. You also receive financial projections of up to 5 years. We also track, measure, and evaluate the business's financial health and performance against forecasts and objectives.
After receiving the report, we then personally walk you through the report every month to help you understand your previous month’s results and future financial position. Every month you receive advice and strategies from a trusted adviser regarding what needs to change and the best ways in which to do it.
The Smart Way to manage your business without the worries, or sacrificing your soul, and every working hour in the process.
Contact us for more information or go to Financial Blueprint