All entrepreneurs analyse other successful businesses and wonder what they do differently.
Foster Lee, sole principal of FBL Consulting Services, a boutique accounting, tax and business advisory practice in Cairns, specialises in advising SMEs and investors.
From reading up on various business and tax compliance issues, to seeking good professional advice from the start, Foster says these are basic strategies that are too often overlooked.
According to Foster, here are 10 reasons why businesses succeed in getting results and reaching their potential:
1. Leading from the top Successful business owners are extremely focused and exhibit passion, energy and enthusiasm as they work on making their business plans and objectives come to fruition.
2. Making the most of expertise Mentoring with other successful people provides an objective opinion on how best to overcome challenges or concerns within your business.
3. Constantly learning leaders They possess good business knowledge but are still prepared to continue learning new strategies.
4. Always providing quality customer service Adding value to the customer every step of the way by servicing them more than they expect or have experienced before.
5. Establishing a positive mindset Truly extraordinary leaders exhibit a range of personality traits, but one important step can be to avoid mixing with negative people, or many avoid seeing and reading negative news.
6. Empowering staff to flourish Successful owners are good at delegating day-to-day routine operations while they concentrate on the current and future business strategies and manage cashflow and credit.
7. Maintaining good cashflow management Cash is king! It’s vital to look for ways to reduce toxic and/or non-deductible debt at every opportunity to create net wealth.
8. Creating a friendly work environment Recognising good worker and effectively coaching staff when they have not performed at their best can motivate the team to work harder.
9. Continuously improving Successful SMEs have implemented an effective system of feedback from staff and customers on ways to improve products and services.
10. Putting in place training programs Having a good integrated system of professional development and training for all employees at all levels.
In contrast, Foster says one of the reasons many businesses fail is poor financial management. He outlines his eight recipes for instant business failure here:
1. Failing to seek professional help on a regular and timely basis
2. Not doing continual due diligence enquiries and homework
3. Not having a good business/management attitude. Attitude determines altitude
4. Unsuccessfully managing cashflow and credit
5. Working to an unrealistic budget and/or business plan
6. Not apportioning your income to cater for contingencies
7. Not having sufficient capital or access to sufficient capital
8. Not knowing exactly where you fit in the business and your responsibilities