28/09/2024
Saturday Startup – news from the front line...
What you think you need is rarely what you need ... to start or grow your business.
Whatever stage one is at in the process of starting or growing a business, he/she will have a view of what is needed to progress. And 99% of the time this is either incorrect, or, is only a part of what is required. And how could they know otherwise, without the experience?
In many cases, a mentor is offering encouragement or general advice, which may be good motivation, but may not address the practical issues of how to start or grow a business.
With startups just seeking funding, asked in a recent survey how much they needed, 100% said ‘no idea ‘. Also when asked about the other 6 to 8 business areas necessary to address to plan a profitable business, the typical response was, ‘what business areas?’ ( includes, market analysis, customer profile, financial and cashflow planning, a marketing plan, business targets, .....and a plan to achieve the targets )
For a business set up and running, and looking to grow. In a recent book on marketing, which addresses the current world of marketing ( not old ideas or text book theories ), the question is posed, why do so any new, growing businesses reach a plateau and then stop? Asked this question every week, by those who come looking for say , funding, or a plan, or marketing....we ask to get an understanding of the business and its operations. And will always identify other areas which must be addressed to enable the business to grow.
Recent examples. Very successful business in a high growth area, sales 20k a month, looking for funding. It was immediately identified that the business model and cashflow process was weak, and the management accounting to help identify the profitability of the business was virtually non existent. A marketing associate identified an additional business stream which would alleviate the cashflow issue going forward, accounting practices and a business plan was put in place to assist the management of the business.... and some funds were raised to reduce the debt level, ( which was about the kill the business)
The regular situation. Approached by someone planning to start a business, seeking funding. No idea of the amount required, and no business plan in place to help plan the business and support an application for funding.
In all these situations, it is suggested that a one page brief with a short financial review, is prepared about the business or business idea. Then ask advice or comment from at least 3 experienced business people.
Whether the business is at the idea stage, or has been trading for many years, advice based on experience will help any business to start , grow and be successful ... but beware, sometimes the advice is not what the person wants to hear... and he or she presses on to the inevitable conclusion!
For a free review of your idea or business: email: [email protected]