This Blog was going to be written as two or three Blogs, but now it's one because the subject matter overlapped.  (Which means I get extra credit – because I planned to do more).  It emphasizes the need for business planning, and there is one particular Grant to help pay for it (must apply before 13 December 2018).

Research Project on Business Failure

The University of South Australia surveyed 650 executives and small business owners to ask whether they had ever experienced a business failure.  One in five had!

The reasons for the failures were sought; not like the generic ones you see from ASIC (ran out of cash, legal issues, the bank wouldn't lend anymore, etc.), but the core reasons were:

- Insufficient leadership and management (13%) and poor planning and execution (12%)

- Inadequate research into markets and sales (17%)

- Poor financial management, including insufficient accounting and lack of meaningful reports (14%)

- Underestimating the effect of externalities (downturn, credit squeeze, aggressive discounting) (13%)

- Poor governance structures (to ensure leaders understand their job and what to do and when) (11%)

- Product or service problems (7%)

- Poor management of people (6%)

- Wrong strategy or poor implementation (5%)

- Others, incl. drawing too much cash out for personal use, poor management of tax compliance, etc.

In the late 1970's Michael Gerber wrote in 'The E-Myth' that most businesses were started by a good technician who had an 'entrepreneurial seizure' and therefore believed he could also run a good business.  Gerber said that it does not necessarily follow that the business will succeed, mostly because being a good technician doesn't actually mean business management skills were also good, and part of the solution was to have systems that told you when things weren't going right (sometimes easier said than done).

Getting Ahead in 2019

Depending who you listen to, or read, 2019 might be a disaster or even not too bad.  I agree there are some big external problems looming (trade wars, oil prices, government policy, interest rates, etc.) and it is wise to consider how these events could affect your business – 'what if' type thinking.  But it shouldn't be an excuse to avoid thinking how your business could be improved.

It's so important to nail a winning strategy (can do in five steps/allow a few hours), and to ensure your marketing program will be effective (also a few steps/and a few hours).

What's the point?  Successful strategy draws on a depth of expertise and knowledge to elicit worthwhile planning on how to ensure a particular result, and to assist in leveraging your other products and services.

Will it be perfect first time?  No, but you'll have a better understanding of what you want to achieve and what you need to do to get that outcome.  Regularly, you review progress against the plan, test new ideas, and make adjustments until you get the right outcome.

Is it hard?  No, not if you follow a logical process, perhaps these:

- Goals for year (3 or 4)

- Strategy (2 or 3 only)

- Actions (2 or 3 for each Strategy)

- Marketing Plan

- Profit & Loss Forecast

- Cash Forecast

Small Business Entrepreneur Grants

This particular Grant, from Queensland, is to help new businesses (up to four years old, based in Qld, less than 20 employees) access professional advice and support in the early stages of establishing a business.  It closes on 13 December 2018.

It provides matched funding up to $5,000 to engage an advisor or business coach for up to 3 months.  The advice must be for at least one of these:

- coaching

- business and strategic planning

- professional business advice (IT, legal, financial)

- marketing strategy (branding, digital strategy, research).

Applications are prioritised on the:

- extent to which the services support the business development, or enhance the owner's skills and abilities

- potential business improvements

- likelihood of jobs growth

- value for money.

If you'd like to know a bit more, give me a call.

Even if you don't meet the criteria for this Grant, there may be other Grants available.  And even if not available right now, why not look towards a better 2019 anyway?  If you'd like some help, please call me.  You just need to have an outline or be pointed in the right direction, or some assistance only when you need it, or even completely done for (or with) you.