Why it is important to keep working ON your business, not just IN your business
Every year, around 10% of the companies trading at the start of the year are no longer trading at the end of the year. That is around 20,000 businesses in the south-west that ceased trading in 2010.
For new businesses it is even tougher – of the 22,000 companies started in the south-west in 2005, 48% were still trading in 2010.
So what can you do to avoid being caught in this way?
- Have a business plan with some really clear goals.
- Track carefully the critical things that need to happen to get you where you need to be
- Manage cashflow really closely
- Focus on marketing and sales with some measurable goals (these are the cause, your results are the effect).
- Test and measure to find out what works and what doesn’t
- Be brutally honest with yourself.
- Have someone to keep you on track.
If you love looking at statistics, you can find the full report at the website of the Office for National Statistics.
If you would like to hear from successful entrepreneurs including Richard Branson, take a look at this link to a free event in London in March.