Many small businesses experience a “crisis”, in fact, many small businesses operate in a crisis mode. In a crisis, a business may be in distress; there may be a radical change coming, an unstable or crucial time.
Most often, this “crisis” occurs because there is no plan, or no plan is being followed. The owner does not look ahead and does not anticipate changes in the market place. Finances are often the root of the problem; budgets are not prepared and if prepared are not followed.
Just like a “strategic value focus plan” a budget has to be flexible, looked at, and adjusted at least on a quarterly basis.
The word management denotes executive skills, guiding a business towards its goals. It means that someone is supervising all the different business components necessary to grow a successful business. It means having the knowledge that you can’t spend your way out of a financial crisis. ( sounds like a lesson our government should learn)
If you find yourself either in a crisis mode or heading towards one, the best recommendation is to stop! Working more hours in the same direction that is causing the crisis will not resolve anything.
By stop, I mean taking a look at your entire operation; find out what has changed, what is the root of the problem. It means reviewing and updating your “business plan” or creating a new one. It means reviewing your budget and determining the cash flow needed to sustain and grow the business.
Being in business for yourself does not mean being in business by yourself. Work with your coach to accomplish this transition. Start now……
The greatest glory in living lies not in never falling, but in rising every time we fall.
Certified Financial Planner
Business Coach and Mentor