Climbing a mountain as quickly as you can, appeals to many, who are focused and determined to prove they can “make it”. Sadly and unnecessarily many fail to make it to the top as they burn resources at too fast a rate and are ill prepared to manage the conditions at the summit of their ambitions.
Many businesses with “great world-changing ideas” do just the same. They believe they cannot fail, they try to grow too quickly and simply run out of cash.
In 2014 there were approximately 500,000 new companies created in the UK; based on stats from previous years, they will fail at the rate of 11-12% per annum, so in five years over half of those new companies will have “gone bust” – that is a tragic waste.
Many business people feel they are under pressure from others to grow quickly, to achieve their questionable (let’s be honest) growth forecasts. The pressure is felt from family, friends, investors, the bank – and often self-imposed by over promising. Don’t let the pressure drive you to make poor decisons – make time to think.
Remember the resources you have are hard to replace – so use them wisely.
Take the first step and develop a deep understanding of your customers and the value you provide.
It might sound obvious but until you know WHO your customer really is:
- How do you what they really value?
- How do you know how much to charge?
- How do you effectively communicate?
Answer these before taking the next step which is to work out how to grow your business.