Forward Thinking Business Blog –
When things go wrong in business, managers often blame external factors. Yet studies show that most business crises are caused by management failures. In poorly managed businesses, opportunities and revenue are lost and problems arise which can ultimately lead to business failure.
Running out of cash is one such problem. This happens for various reasons — from miscalculating profit margins to over-spending and inadequate credit control. Yet cash flow problems can be managed with a reliable accounting system. At a minimum, this will provide up to date, reliable information on your bank balances, revenue, margins, debtor days and tax position.
Inadequate monitoring of competitors is another common problem. In today’s fast paced environment, new competitors spring up all the time and customer demands change rapidly. Therefore access to reliable market information is vital.
Owner managed businesses sometimes do not prioritise investment in their management team. As your business develops and grows, it is important to realise you can’t be an expert in all areas. Seek appropriate support and learn to delegate. Otherwise, you risk spending too much time working in your business, and not enough time working on it.