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

  1. Starting a business – Introduction
  2. The Hero’s Journey
  3. Why Businesses Fail
  4. The Importance of Plan Z
  5. How Businesses Succeed (this page)
  6. The Balanced Scorecard
  7. Cashflow
  8. Start With the End in Mind
  9. Increasing Revenue
  10. Health and Resilience
  11. How Mindset Affects Success
  12. Brand Proposition
  13. Activity
  14. Habits
  15. Conclusion and Review