Recently, my parent company, The Entrepreneur’s Source, sponsored research that cites a short, but compelling list of dangers that typically cause business failure and that are prevalent across the board, in all businesses – independent of industry or sector.
Not focusing on the dangers can make the difference between being a player in an industry or another statistic of business failure. This research has already identified the challenges or problem areas that all business owners are most likely to face. Business owners need proactive partners to move them right to the rapid impact solutions needed to increase performance and revenue.
These findings state that traditional consultation, where consultants spend valuable client time and money identifying problems within a company, is not always an effective approach.
The 2007 research found that businesses are weak in one or more of the following areas:
- 1) Financial management. Cash flow problems are responsible for over 70 percent of business
failure with their first year. - 2) Human capital (selection, retention and training). The mismanagement of human capital is the main reason that "good" companies never become great.
- 3) Planning (business and marketing). The majority of companies pursue projects that are incompatible or inappropriate for their resources and capabilities.
- 4) Sales and sales management. Under-performing salespeople bring in at minimum 50 percent less revenue than top performers.
- 5) Communications leadership. The beginning and end of all failure in business lies with the people who make the decisions every day.
The unique coaching process provided by The Entrepreneur’s Source identifies the rapid impact solutions specifically needed to address these business dangers, therefore saving time and money.
Career and business coaching is a new emerging paradigm, combining the expertise of advisors with the efficiency of a coaching team providing solutions. When business owners lose sight of their goals, it is often because they don’t have the ability or are unwilling to see beyond their blind spots and take immediate action. Working with a coach can help a business owner remove the blinders, see their company more objectively and make fact-based decisions in an effort to increase performance.
Marty Barnes is the managing partner of The Entrepreneur’s Source in the Milwaukee area. He can be reached at (414) 351-3440 or The_E_Source@Earthlink.net.
