How Would You Describe Where You Are With Your Business Is Right Now?
- Brainz Magazine
- Aug 25, 2022
- 5 min read
Written by: Christine Nicholson, Executive Contributor
Executive Contributors at Brainz Magazine are handpicked and invited to contribute because of their knowledge and valuable insight within their area of expertise.
Are you...
Struggling?
Frustrated?
Progressing?
Successful?
Of all the 5.4 million businesses in the UK right now, 80% of them are struggling or getting by and barely keeping their heads above water.
20% of all businesses are really struggling!
Living hand to mouth, with all the stress that goes with it – and not really sure how to change it. They are caught in a spiral of doom and some don’t even know it! They have no plans or clearly articulated goals and they don’t know their key business numbers. They are more likely to have a nasty surprise at the end of each financial year.
These businesses struggle with consistency. To customers, staff and suppliers there is often a sense or appearance of chaos and disorganisation. The business has difficulty in attracting and retaining the right people, with the skills and attitudes needed to really make a change, for real success.
The business owner experiences high levels of stress and uncertainty because of a lack of cash – and they lose sleep over how they are going to get though the next day, week or month. In many cases, they dread going into “work” but know that everything will fall to pieces if they aren’t there. They only see their family when they are distracted, worried and unhappy.
60% of business owners are frustrated!
They might have some plans or goals, but more than likely it will not be written down or shared with anyone who could help them.
They need to understand basic business finance but don’t have the time to learn about it.
They have inadequate management information and don’t do anything to make sure they have what they need to enable better decision-making, often because they don’t really know where to start or how to get help.
The business owner is the main (most often the only) decision maker, creating a bottle neck in many of the informal processes that the business has. There’s a rudimentary understanding of “how we do things around here”. They know they need a bigger, more skilled, team but recruiting takes up so much more time and energy than they have to spare.
Managing cash is a month-by-month challenge. The business owner KNOWS the business could be so much more successful but they don’t know how to get it on the right track – there always seems so much to do that gets in the way of improving things.
These 80% of businesses are barely getting by. That’s a lot of businesses! And a lot of unhappy business owners.
Do you recognise yourself here?
By contrast, 15% of businesses are “doing OK” bridging the gap between surviving and getting into real success territory. The business owner knows that action is required and that they need help getting there. In fact they recognise that to work towards success means investing in the essential elements of their business. They are not just looking for success, they are getting ready to do something about achieving it.
4% - that’s a very low number! – are getting on track and achieving.
They have plans, goals and some way of measuring their progress. They know and understand the value of their business numbers and the drivers. They use management information to make decisions and keep track of their achievements.
There is a team of key people in a top 4% organisation which the business owners rely on and now the worry is related to retention and succession as the business grows.
Success has bought surplus cash allowing growth to be funded and contingencies covered if a disaster hits. Management accounts and cashflow forecasts are essential business planning tools. Everyone knows what they need to do and what they are responsible for.
The business is on the way up but there is work to do and the business owner is an essential part of the day-to-day operations.
Only 1% of businesses are truly successful.
They have clearly communicated plans and goals. There are monthly management reports shared with everyone who needs to see them, and the entire team is working in collaboration towards the collective vision of “what success looks like”.
Customer, suppliers and employees all experience the same levels of support and service based on excellent systems which are continuously improving. There is clear accountability, responsibility and authority throughout the organisation.
There’s a great team in place constantly developing skills and finding ways to enhance the business. If the business owner took 6 months off, the business would still thrive.
Successful companies are not just the big ones – some of those are really chaotic! – because success is not about size.
Where is your business today? Where do you want it to be?
Do you even know?
Starting a business is hard work – keeping it going is just as hard, if not harder. Yet every day thousands of people go out “on their own” and start a new business, often without realising what they are about to embark on.
Blissful ignorance and some luck can carry you so far before the stark reality of getting a business off the ground starts to hit hard. Sounds harsh but there isn’t an entrepreneur alive (or dead for that matter) who achieved success without great timing, hard work and the right team on their side.
And it doesn’t matter what size your business is – whether you are a sole trader or building something that you hope will change the world. Running a business is pretty much the same for everyone. The only difference is the scale.
Before you get started in a new business, or continue with your existing business some of the questions you should probably ask are:
Is it a viable business?
Do you want it enough?
What is it going to cost you in non-financial terms?
Is it a price are you willing to pay?
“The price of anything is the amount of LIFE you exchange for it” - Henry David Thoreau
Once you are on the journey, it can be easy to forget the early passion and feelings of being invincible when the challenges of running a business wear you down every day, relentlessly, persistently.
Whether you are working in your business(es) or are a shareholder and have passed the day-to-day running onto a management team, most companies have similar problems and the solutions are often remarkably simple yet can be equally challenging to implement.
How you approach these challenges will dictate where your business ends up, or even if it will survive at all.
“No one talks about entrepreneurship as survival but that’s exactly what it is” - Anita Roddick
Christine Nicholson, Executive Contributor Brainz Magazine
I am Christine Nicholson, an author, speaker, and award-winning Professional Business Mentor who works with multi-million turnover business owners of technology, engineering, or product/services businesses.
I'm UK Business Mentor of the Year 2021 and a Global Top 50 Woman in Accounting. I've appeared on BBC talking about business!
0333 567 8011
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