Did you know that around 50% of organisations fail within the first three years of business?
I am regularly invited to be a guest presenter at the UWA Business School to explore innovation and entrepreneurship in small business with MBA students. During one of my recent presentations, Professor Tim Mazzarol congratulated me on truly having survived the ‘magic’ three first years in small business. He outlined that research shows that around 50% of small businesses fail within the first three years.
The question is why?
Some of the factors that impact on the successful start-up and survival of an organisation include:
- How well they know their own business (the environment we operate in, what do we offer to clients, who are our clients and our competition, our market and product)
- Knowing how to ‘price’ yourself and your ‘product’.
- The organisation’s goals and indicators that measure how well these are being achieved
- The organisation’s commitment to reinvesting into itself
- Processes in place to monitor and evaluate the organisations activities.
I discovered that having a well-rounded and researched business plan has made sure that I know my own business, its products and goals. Sure, some of this has changed over the years (and this has been reflected in my business plan). Overall I have been immensely grateful that I had the wisdom and support – I participated in UWA Business School’s Small Business Excellence Program (SBEP) early on – to develop a solid business plan which I have identified as one of the major factors for GoodRun Solutions not only having survived but thrived in the past four years. Having a business plan has guided me in making major decisions such as what tasks needs to be done by whom, which projects to apply for and how to ‘price’ the projects. Part of my business plan was identifying a business model that will suit my goals and what I expect the business to achieve. I never forgot the advice given to me right in the beginning by Professor Mazzarol to have an ‘exit strategy’. That sounded a bit off at the time. But now that I know how it keeps me on track and focuses me throughout the life of the business I appreciate the advice given right at the start-up of GoodRun Solutions.
My business plan tells me that I am in the space now where I promote my product called ‘organisational growth’ and this article is part of making those that are associated with GoodRun Solutions aware that we provide professional services to you in planning, developing and growing your organisation. So, if that’s what your organisation needs why not contact me and have a chat on how we can be of help.