The Los Angeles CEOSpace Club hosted branding expert and CEOSpace member, Gerry Foster last night as guest speaker, at the Beverly Hills Country Club. Gerry talked about the 6 Reasons Businesses Fail. Guests were furiously taking notes as his presentation hit home to many.
- Failure to manage finances. 32.1% Over expansion, over spending. Failure to keep a tight rein on receivables. Lack of funding
- Lack of Management Competence 4.6% Business owners think like technicians rather than having a business mindset. They are good at what they do (their particular skill) but are incompetent in other critical areas.
- Poor record keeping 12.3% (books and expenditures)
- Sales and marketing flaws 10.7% Branding, marketing and sales
- Staffing problems 9.0%
- Failure to use external advice 2.7% They believe they know everything.
81.4% of the reason a business fails is on the part of the business owners themselves.
The remainder of factors is due to circumstances not under the control of the owner, such as inflation and union problems.
He suggested that business owners not hire people who only want to receive a paycheck. Instead hire team members who are like minded and share the company vision.
Failure to keep up with the times. Step into your opportunity and then adapt to challenges and changing conditions.
Always take the temperature of your business.
For more on Gerry Foster go to www.dare2bdifferent.net
About Rebecca Olkowski