How Businesses Succeed
Now let’s look at how businesses succeed. We have already looked at the reasons businesses fail, and seen that it boils down to five main areas:
- The wrong mindset.
- Running out of cash.
- The wrong type of customers.
- The wrong people in the network.
- Inadequate systems and processes.
To make a businesss successful, it’s necessary to turn around each of these areas of failure.
- Keep an eye on the cash flow.
- Use a balanced scorecard (see next video).
- Have a clear understanding of what profits are expected.
- Make sure that your network (including business partners) are suitable for the role you need them to play.
- Make sure you have the right systems and processes to run the business successfully.
- Be honest about what skills you have and what skills you need to develop or buy in.
- Finally, make sure you attract the right clients and generate the right type of revenue.
In this video, Michael introduces his 9 point checklist to do just that.
Go to Part 6 – The Balanced Scorecard
Starting a Business Video Series Index
- Starting a business – Introduction
- The Hero’s Journey
- Why Businesses Fail
- The Importance of Plan Z
- How Businesses Succeed (this page)
- The Balanced Scorecard
- Start With the End in Mind
- Increasing Revenue
- Health and Resilience
- How Mindset Affects Success
- Brand Proposition
- Conclusion and Review