Nearly 90% of business failures are caused by poor, ineffective, or incompetent management! Why?

Most owners when their business fails blame amongst the following: the market “it wasn’t ready” the customer “they won’t pay” the product “it didn’t have the right features” the staff “they weren’t motivated” the government “they don’t support small businesses” ……

If you take a look at these issues what is central to each elements – “the owner” aren’t you the one that’s supposed to be managing the business and have an eye of each of these elements making sure that each of these issues is evaluated and appropriate action taken. Or I am mistaken!

Most owners take their widget into business not themselves, they entirely widget orientated and what they don’t know about their widget is as we say in the UK “is not worth writing on the back of a fag packet”. Unfortunately in many cases this orientation is inward not outward looking so the owners doesn’t necessary appreciate the widgets dynamics and interaction with external influences mentioned above. I can hear you saying Andy don’t be silly of course they do they are risking their capital and maybe even the banks so they must know. The plain fact is they don’t and the question is why don’t they?

In many cases they owner has been part of another organisation which produces the widget believing they can do it better tend to be technicians not having a background in business. It’s not like being an engineer when you have to be qualified so how difficult can it be!

They bounce the idea amongst their friends, friends and acquaintances for advice on whether it’s a good idea to go into business and they want to be supportive by saying yes.

Can you see a trend developing to explain why when a business fails they blame all the outside elements because they haven’t engaged with the market to confirm what the market wanted in terms of making sure that there is sufficient volumes where available for viable business at the price you had to sell it with the features the customers wanted and was available from where you customers wanted to buy it.

It’s really misunderstanding marketing that kills a business along with not having sufficient business skills to enable you to complete the necessary research to evaluate and confirm a market exists for your widget and maintaining an update understanding of the what the market wants.

You won’t sell anything, well that’s not entirely true almost giving it away will generate some sales, if you don’t what the market wants and you won’t understand the market by asking your friends, family and acquaintances.

Bottom line if you know what your customer’s wants and needs are that need to satisfy and you know what price they are willing to pay and where they want to buy from you on your way to being successful.

New Mindset can help you answer these questions to make sure that your products and services are what the market wants.

So give Andy a call on 01276 537 282 or email andy.hamer@new-mindset.com for your FREE ½ day consultation.