That’s The Good News, Now Do You Want To Hear The Bad News?

If you do a quick search on the internet, you will uncover hundreds of experts, coaches, accountants, journalists and government organizations that quote the statistic “8 out of 10 business fail in the first year”. However, the fact that the statistic is widely touted doesn’t necessarily mean that it’s true or backed up by empirical evidence.

So what is the truth? I searched the internet and couldn’t find confirmation of any study that was done to back-up this statistic (that 8 out of 10 businesses fail) by a reputable or well-known bureau. What I did in fact find was some evidence to the contrary. According to credit reference checking agency Veda Advantage, only a small percentage of new businesses close in their first 12-months of business.

What is the exact amount, you ask? Would you believe, less than two percent?

However, they assert another 32 percent close their doors between their second and fifth year of operations, while 21 percent wind up between the sixth and ninth.

So, that is the good news. However, as you can probably guess, it’s not ALL good news.
Just because a start-up doesn’t go under in the first 12 months, doesn’t mean that the owner is running a successful enterprise. I wonder if anyone has bothered to measure how many of the businesses who survived:

• Paid the owner a wage that was at least equivalent to what he/she could have earned elsewhere as an employee?
• Generated a profit and positive cash flow? and
• Had enough working capital to service their debt, pay taxes and suppliers etc. as they came due?

The first few years of business are incredibly risky. In working with hundreds of business owners, we have found that the large majority opt to forgo their salary or inject more equity to prevent them from going under prematurely. What this means is that, while they may not have “technically” gone under, these fledgling enterprises are far from commercially viable and successful.

Statistics can be both helpful and misleading at the same time. It is easy to assert figures but more difficult to substantiate their veracity or explain the implications thereof.

The author of an article or press release will often use statistics to capture your attention and motivate action. That’s why people use statistics – numbers are persuasive and have an aura of authority.  A statistic like – 8 out of 10 businesses fail – gets attention, doesn’t it?  Whether this data is accurate or not, is only half the story. As a business owner or manager, we must look deeper to find the insights that we can take away and use to improve our results.

Personally, I don’t care what percentage goes under. No matter how long you’ve been operating, if you’re not getting paid a salary, producing profit and generating positive cash flow, you’re not running a successful company. Closing your doors is only half the story. The doors may very well be wide open, but technically, no one is there.

Rhondalynn Korolak, Author of Financial Foreplay and On The Shoulders of Giants

Discipline and attention to details is more important than ever if you want to succeed in challenging economic times. Take a look around… competitors are closing their doors – which means more potential customers for the businesses that DO survive. And in times like these, it’s going to take more than “thinking outside the box” and goodwill with existing customers to secure the survival of your business.

You may have been lucky over the past few years – you may have found it possible to operate without a detailed, written plan and systems/processes. But the global economic crisis has changed all of that. If you want to thrive, there is only one thing that is for sure – uncertain times call for deliberate decisions and proven practices.

So here are & top tactics to recession-proof your business.

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Rhondalynn Korolak, Author of Financial Foreplay and On The Shoulders of Giants

Life isn’t always easy – there can be no question about that. It’s unpredictable and it’s often hard to make sense of what happens. Some of the events in our journey end up being nothing more than minor irritants, while others are more like being hit by a Mack truck at 200 kph.

Regardless – we have to play the hand we are dealt.

Part of the process of coming to terms with whatever occurs in your life is to find a way to make sense of it. If science indicates that objective reality doesn’t actually exist, it is very much up to us to create a reality that helps us move on and find some meaning. As W Mitchell so accurately points out, ‘It’s not what happens to you, it’s what you do about it that matters’.

I like to think of it as choosing to ‘make chicken soup out of chicken shit’. And it is often in these times of desperation or perspiration that we accomplish our greatest achievements. We play the hand that we have been dealt and in so doing we stretch beyond the finite boundaries of probability and skill into the realm of possibility and inspiration.

For Christopher Reeve a random riding accident changed his life. Everything he was in terms of his career and how people perceived him vanished the instant he hit the ground. And yet he was able to muster his resources and master his own mind so as to find a reason to carry on. I’m sure becoming paralysed was not part of his life plan. I’m sure there must have been times that he was angry and bitter, but these feelings obviously didn’t consume him.

The simple truth is that Christopher Reeves found himself in a wheelchair at just 43 years old. Nothing could be done to change that. There was no way to wind back the clock and no way to repair the damage. His condition was permanent. But his state of mind and any negative emotions he felt were temporary and 100% within his control. He had two options: (1) let the event consume his life and extinguish his spirit or (2) accept his condition and make the best use of his time and influence to advance science in the hope that someday others with spinal cord injuries might walk again. In many ways, he became more of a superhero after his accident than he had previously been in his film roles because he created a vision and a purpose that was bigger than the event that changed his life.

He accepted the cards he was dealt in the game of life and he played with the courage, determination and strength of character of a superhero. Perhaps Christopher himself said it best, ‘I think a hero is an ordinary individual who finds the strength to persevere and endure in spite of overwhelming obstacles. They are the real heroes, and so are the families and friends who have stood by them.’

Perhaps today, January 5th, 2011…….yes TODAY – is the perfect time for us to all stand back and celebrate the superhero within ourselves and others. If we choose to play the hand we have been dealt to the best of our ability…I think we will all look back [someday] and agree that the “game” was worthwhile.

Rhondalynn Korolak, Author of Financial Foreplay and On The Shoulders of Giants

If you are like most business owners, you went into business because you are passionate about AND good at WHAT you do… and you wanted the autonomy and financial freedom of owning your own business. You were probably thinking, “as long as I am good at what I do, how hard can it be to make a decent living and support my family?” And you have probably discovered that it is actually harder than you thought.

Here’s the problem…

You may be one of the 97% of small business owners who discover that although you work incredibly hard and your sales seem to be increasing each month, you have little to show for it financially.  Perhaps you are already doing well but you are unsure how to accelerate your results or expand your business? Or you may simply be wondering why you are struggling to pay the bills lately even though your accountant says that you are making a good “profit”.

One of the biggest problems is that business owners often convince themselves that being busy is what business is all about. And you tell yourself “as long as I work hard and do my best, there is not much else that I can do”.  Everyone knows that we’re supposed to work smarter, not harder, but the challenge lies in knowing HOW to do that. And in the meantime, you may have found it just seems easier to do everything…just in case it’s important, or makes a difference.

So, if you’re supposed to do less, HOW do you figure out what is critical or what will have the biggest impact?

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7 Marketing Secrets Lady Gaga Can Teach You for FREE

“I’m your biggest fan, I’ll follow you until you love me
Papa, paparazzi
Baby, there’s no other superstar, you know that I’ll be
Your papa, paparazzi”

In today’s challenging business environment, customers demand more from the products and services they buy—they want what they want, when and how they want it.  And if they do not get it from you, they can and will obtain it from one of your competitors. Therefore, creating raving fans—customers who love what you do and are willing to follow, listen and respond to your call(s) to action —can give you a significant strategic advantage and improve your bottom line.

Now some of you may be wondering “what does Lady GaGa have to do with best business and branding tactics?”  She’s never attended business school nor does she have a history of entrepreneurship.  While it is easy to question her outlandish costumes, her repetitive child-like lyrics, and her over-the-top media stunts, it is hard to ignore her obvious musical talent and her ability to be at the right place at the right time with the right tune.  Whether you love or hate her (and 99% of you are definitely in one camp or another), it is difficult to ignore the tremendous achievements of this branding genius.

Less than 18 months ago, she was virtually unknown – and today she has two platinum selling albums and is the envy of artists that have been in the business for decades.

How did she do it? 

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