Early Stage Revenue Growth is Hard?
What Percentage of Small Businesses Fail?
The fast answer for what percentage of small businesses fail, according to data from the Australian Bureau of Statistics: about 20% fail in their first year, only 70% of businesses will survive their second year in business and about 50% of small businesses fail in their fifth year. The good news is about 30% of businesses will survive their 10th year in business.
How To A Use Reverse Thinking Mindset For Business Improvement
How To Use A Reverse Thinking Mindset For Business Improvement Over many years I have met a lot of successful leaders, across many industries and I can’t help but notice that a lot of them think in reverse mode. Reverse thinking is a powerful mindset technique that we can all use – if we are aware of it. A reverse thinking mindset can be used to great effect for business improvement and strategy review. The classical forward-thinking approach to business improvement The classical approach is to consider your current position (or origin) and plan steps logically from the origin into the...
Read MoreWhy Does Franchise Friction Seem Inevitable?
Is Franchise Friction Inevitable? Friction is rife in the $146 billion Australian franchise industry that is littered with controversy. The Franchise Council of Australia claims there are some 79,000 franchises employing nearly half a million people. High profile news cases have exposed many issues and the recent Royal Commission has aired questionable practices and attitudes. The core of many franchise problems that is very rarely spoken about because it appears to be counter intuitive. It is a fundamental mismatch in the goals of the franchisor and franchisees. What is a franchise?...
Read MoreThe difference between a great idea and new knowledge.
A great idea or new knowledge? There are so many great ideas about and yet many will never become commercial businesses. A great sounding idea may be novel but is it actually “new knowledge”? “New knowledge” can only be proven through objective, repeatable experiments that prove or disprove a defined hypothesis. If an expert can predict the outcome, without the need for experimentation, then it is not “new knowledge”. Remember, just because the idea is new to you, does not mean that it is new to everyone! The discovery of “new knowledge” opens several opportunities to you: Developing...
Read MoreChange Management and Communication Begins with the CEO
In many SME businesses we regularly witness a change management culture that is toxic towards the CEO/business owner. The ramifications for the organisation can be the difference between success and failure of your business, particularly when you need a big staff effort at challenging times. Being honest with yourself, “Is this a problem you are facing today?” Are you that CEO? When it comes to business communications and change management, it is critical that you need buy-in from your workforce and must begin with the CEO and Board (if you have one) of your company. If the CEO lacks the...
Read MoreGet a Lean Cashflow Mindset
Get a lean cash flow mindset and save yourself a lot of stress. Mention cash flow to business owners or entrepreneurs and their eyes glaze over -boring! However, once they experience a cash “crunch” then suddenly, their eyes become wide open. Ignoring cash flow is simply perilous to your business. The lack of cash flow is not only a major constraint on business growth, it is one of the top killers of businesses. Ignoring it won’t help-understanding and managing it will. Understanding profit and cash The concept of profit seems easy for many of us to grasp and yet it is only an estimation...
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