Now that we are well into 2015 it is worth reflecting on how our initial profitability expectations for 2015 are materialising and how we expect to achieve them.
If we feel our business needs improvement over 2014 do you feel you have the best plan and the means to make it happen?
The facts prove the majority of businesses achieve lower profitability levels than what they initially expected at the outset. Most business owners follow all the rules and operate to the highest standards they can. Taking advice from auditors, solicitors, tax advisors, marketing experts and others they try to follow all the changes in tax, company law, employment laws as well as trying to satisfy changing customer tastes, preferences & demands. Despite following all the rules and trying to do all the correct things up to 2/3 of businesses in some sectors are deemed to be at high risk of business failure. Even in lower-risk sectors the risk of business failure is still around 50%.
Unless business owners have the best approach & standards in
· Reaching their potential customers with their messages
· Getting their product/service offerings accepted by customers
· Ensuring their they deliver these at profitable rates
· Getting all the elements of the business operating to the required level
they are unlikely to be successful even in the short term.
Using a cooking analogy the best meals result from not only having all the right ingredients but in the preparation, cooking, presentation and service. Business success also needs not only the best ingredients (marketing/selling, production & finance skills) but also in having these work together in the best possible manner. Throwing the correct ingredients into a pot and turning up the heat with an occasional stir might not produce the best outcome either for a chef or a business owner.