According to Bank of Ireland 66% of all business start-ups will fail in their first five years. Ulster Bank have put this figure at 50%.
One of the fundamental reasons for this, is lack of planning!
Having worked with Business Owners across the length and breath of the country for the last 14 years, we have found that a staggering 80% of Small Businesses without a Business Plan will fail in their first 5 years.
Whichever way you look at it these are very worrying statistics and we need to reverse these trends as a matter of urgency.
There are many reasons why businesses fail in Ireland. See the list below for some of the main reasons:
1. Absence of planning, direction and accountability.
2. Poor cash-flow management.
3. Lack of skills and business knowledge within the organisation.
4. Reluctance on behalf of the business owners to seek outside help in a timely manner.
5. Stress from all of the above leading to burn-out and business breakdown.
When compiling a business plan – it is crucial that Business Owners include the following elements:
• Sales and Marketing: How you plan to grow and sustain your business – be sure to set out specific & measurable targets.
• Cash-flow Management: Carry out a regular cash-flow analysis so you can plan for those cash-gaps and surpluses.
• Team Building: Ensure your have a system to hire, train, motivate and retain great team members.
• Systemise the Business: What systems could you introduce to make your business run more efficiently? Set a timeline to implement these systems!
• Time Management: Introduce a default diary to prioritise workload.
• Accountability: What KPIs have you set out for your staff, and what incentives are in place to encourage them to take ownership and be accountable for results.
In most instances any of the difficulties listed above can be overcome with some effective planning and by seeking professional advice on time. A Business Coach can provide the expertise to help Business Owners and Managers implement and execute a business plan that will guarantee survival and deliver sustainable growth.
Our vision for Irish SME’s is very simple – Teach business owners how to run their businesses better so that we can change the statistics. Imagine the impact this would have on our communities in Ireland if our SME sector thrived in the next 5 years as opposed to becoming one of the above statistics!
Click Here for more information and to register your place.