In Australia over 80% of all small businesses fail within the first five years of operation according to a recent survey by the Australian Bureau of Statistics. That means that only 20% of small businesses have what it takes to succeed long term. So why do some succeed and not others? Well in my opinion is got a lot to do with how the owner thinks and spends their time. Here are just a few of the common mistakes I come across as a Business Coach of over 10 years…
PRICE COMPETITION: Many businesses start out doing well, but at some point in dime things are bound to get a little tough, and because they have no strategies in reserve to attract new business, most resort to the only tactic they know which is to compete on price to attract enough income to pay the bills. Unfortunately this strategy is doomed to almost certain failure because in a price war everyone looses, the only question is by how much??? You see the problem is that every dollar you discount, is a dollar LESS PROFIT, and in fact many business owners don’t even know their true break-even point, selling below true cost and eventually going broke…
EFFECTIVE MARKETING: Learning and implementing EFFECTIVE MARKETING STRATEGIES and SALES PROCESSES in your SMALL BUSINESS allows you to generate QUALITY ENQUIRIES and convert more of them into PROFITABLE SALES! This means that not only will you become busier with more profitable work, but also SAVE MONEY on your Advertising bill in the process.
In Part 2 I will discuss some more ideas to help you create BIG SUCCESS in your Small Business…
Would you would like to discuss this topic or any other areas of your business with me? Visit www.business-advice.com.au to send an email or call 0412 895 599 during business hours.
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