3 steps to PREVENT BUSINESS FAILURE

“what makes me different from the 80% of businesses that will fail?”

No one seems to have asked "Why" so many SME's fail. Well, I can't hear them that is.



No one seems to know that for all the businesses that Macdonalds will start, about 24% will fail. That is the inverse of what is happening to us SME's, where 80% of us become statistics, and fail.



Failure is really a perspective. How you look at it before and as it happens, can have a major impact on your chances of succeeding or not. A core value everyone needs, is a positive outlook, even when the outlook is grim.

Every true entrepreneur knows they face a risk of liquidation. Most of us close our eyes tightly just so we don’t have to think about it.



Very few know how to survive it. Yet, we all jump in to row our boats with little thought given to how to "insure" ourselves.



There are a three simple things to do, to make a vast difference in the outcome of our SME success vs its failure.

HOW TO PREVENT BUSINESS FAILURE

1) Plan to fail

2) Get some proper insurance

3) Learn some operations
basics

By planning to fail, I mean seriously looking at the "what if we go under?", the dreaded lurgy of capsizing our boat. How will you swim? Where to? Once you have a rescue plan in place, Kyosaki calls it an "exit plan", then you know what to do. Part of this phase of business planning of planning to fail, is actually drawing up a plan for the event of liquidation. How will you wind up the business. Knowing this before you start, will help you to structure the legal entity the best way for your situation. If you choose to ignore the opportunity to spend a little money when you start up, and structure your legal entity(ies) properly, then when the mango hits the whirly thingy, it will not be distributed evenly and you will experience the sheriff collecting your fridge, lounge suite, TV and anything else he can lay his hands on.

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How to grow your small business

and survive it…

Every small businesses worst nightmare, how to survive zero cash flow. Permanently.

Foreword

WH Hitchens

Graeme and I have been friends for most of our lives. We were always close to each other, in friendship, and in what we did in business. Although we never partnered in a business with each other, it came very close. Using a mix of our experience, we have discovered something unique, a secret as it were, that steadied our businesses and helped us to ride the bad times. Many of you reading this blog probably want to make your business more stable, find more customers, manage your cash flow better, get more cash flow and we could just go on forever about the problems that small business owners like you and us face. The real problem is that what we as entrepreneurs need to know, is not taught to us before we venture our livelihoods on the risky little boats we want to sail forth and find our fortunes in.

We have targeted this book at those who want to make a difference to their own lives. Those who are honest enough to admit that running your own business can be like chasing your own tail.

Do you want to retire young?

Do you want less stress in your business?

Do you want more time with your family?

If you answered “yes” then this blog is for you. If you didn’t answer “yes”, then please ...early retirement is not for you. You must work until you are old, and keep working. Maybe you will have to move in with your kids. At least you can have revenge on the kids for their teenage years.

But, if you answered “Yes”, then be prepared to learn something so simple, it has been staring you in the face all along. As my mom always said, “it’s not what you said, it’s how you said it” that makes the difference. We have assembled the lessons we have learned from the school of hard knocks and put them in easy to follow steps. Its actually both “what” and “how” you do this that is important.

There is no need to fail at the business you have. You can survive your business!

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