Why Do Some Small Businesses Succeed?
It is estimated that 8 out of 10 new businesses fail before the fifth year. On this basis before you can even say “open for business” the odds of achieving long-term success are already stacked against you. Every year in Australia there are around 100,000 new businesses started by enthusiastic owners with a passion for their industry and a desire to succeed. Allowing for an estimated start dollar cost of between $10 ,000 and $20,000 plus the cost of stock starting a business and being one of the 8 is not an enticing prospect.
Why do some succeed and others fail?
First and for most the overwhelming factor is the business owner’s passion for their business, or just their passion for being in business. In the latter case the subtle distinction is that some people are good at business and know how to utilize, or leverage the expertise of others to be successful whilst the former are what I would call ‘technicians’ who just love what they do.
The second part of this key factor is the actual industry itself and whether it is classed as a High, low or medium potential industry. A high potential business is one that is emerging or has not reached the maturity stage of its lifecycle. A low potential industry is one that has seen its better days or alternatively one that is highly capital or labour intensive – one may also suggest that it is heading towards exclusivity and a highly niched status.
Creativity is another key factor for success each and every small business needs the creative influence of the entrepreneur and the steady hand of the down to earth manager. Creativity is essential to maintain a competitive edge in the marketplace whilst the manager component keeps the ship on course.
People are the next important factor, every business has to have someone to interact with the consumers of their product and getting the right people with the right attitude is fundamental to success. The 3 elements of the people equation, internal, external and connections must come together for success.
Lastly education and experience are the final key to small business success, the successful business owner recognizes that whilst his experience will trump education he knows that learning or education is absolutely vital for his continued success.
The small business owner in this stage of their business growth does not want to be tied down to attending classes at 6:00pm every night, they want concise learning activities that are directed at what they want to know for today and can be delivered when they want to access the learning. E-Learning is now the key to answering the small business owner’s desire for information.
The astute small business owner can start learning more about growing their business with E-learning from www.astutemarketingacademy.com this online resource provides you with the resources to take your business to another level. It’s on the WWW! So it doesn’t matter whether your small business is in Geelong, Warnambool, Mudgee, Melbourne, Brisbane or Sydney these valuable resources are available for you 24/7.
Helping you get more from your business!
Astute Business Coaching has a range of affordable coaching programs designed to coach you to business success and improved profits. Visit our site to learn how you can improve your Geelong, Surfcoast, Melbourne or Western Victoria business.