“In a chronically leaking boat, energy devoted to changing vessels is more
productive than energy devoted to patching leaks.” ~ Warren Buffett
The Winds of Change Bring Storms…
I have always loved the above quote from Warren Buffett, the most successful investor in history.
The key word is “chronically”.
All businesses present their own unique challenges.
Some are quick and easy fixes.
Some require time and money.
Some are not worth the trouble keeping alive.
Some are worth the trouble but pose very difficult choices. Real obstacles to success.
Sometimes it’s hard to know which is which and what to do.
I invite your attention to the Infographic from the SBA below.
This statistic has changed little over the last 50 years.
The truth is, in good and bad economies, the success/failure rate remains constant.
This year, 30% of the businesses started 2 years ago are gone…
This year, 50% of all businesses started 5 years ago have folded…
This year, 70% of all businesses started 10 years ago are history…
Only 25% survive long term.
Why is this?
Because good ideas tend to permit enduring businesses when managed correctly.
Bad ideas fail quickly.
Mediocre ideas hang on until the stakeholders can’t afford to pay to play any longer and just throw in the towel.
So, the question becomes, how can you build your business to survive the ever-coming storms and prosper?
As a serial entrepreneur and investor, I will give you the long and short of it in 3 simple to understand bullets:
- Develop, maintain, and follow a well-defined STRATEGY… reviewed monthly… and updated constantly. If you do this, you have substantially moved the odds in your favor. If you do not have a marketing, sales, financial, operational, growth… all encompassing… strategic plan, you will never make it to the winner’s circle. (Would you invest in a company without a real strategy for business success?)
- Start every day with this question, “What will I do today to GET more new customers… KEEP my existing customers returning… and MAKE some money from all the hard work I am expending?” (Would you invest in a company that fails at the most basic level?)
- End every day with an honest review of the RESULTS you produced: Sales, cash-flow, special projects, anything, and everything. If you don’t have the results you want, do something different. If you do, do more of that! (Would you invest time and money in a business that produces few tangible results?
There are massive opportunities everywhere. Your job is to see them then seize them.
It all starts with a clearly defined strategy for producing the results you want in the time available.
If you don’t have a real strategy, order your personal copy of The Golden Game of Business and attend our MasterMind Sessions.
Stop just stringing a bunch of random tactics together and build a business worth building. Always remember, strategy first… tactics second… then execute as if your business life depends on it because it does!
E. R. Haas, CEO
Small Business Strategy
Made Push-Button Easy!
Category: Business Growth