Laying A Foundation For Your Business
Running a business gets so demanding, that we often can't see the wood for the trees. We become preoccupied with ensuring that everything in the business works the way it is supposed to. In other words, we spend most of our time working in the business.
The problem with this operational focus is that it is easy to lose sight of what could be done in the business to make it run better. The business will only prosper in the long term if you devote a lot of attention to improving how the business works and increasing its capacity.
Spending a lot of time working on the business, makes it grow in the long term. Business growth is sustainable and things just keep on getting better. If necessary, get other people to work in the business. Working on the business should be your top priority.
Failure to work on the business causes it to become trapped. It is almost like the business gets stuck in a box. The business is unable to dynamically take advantage of opportunities. And it fails to adjust to a rapidly changin g environment. Eventually, the business starts losing its competitive edge. A one way downhill trip becomes almost inevitable.
Most businesses fail or under perform because business owners spend too much time working in their businesses. And not enough time working on their businesses. The biggest fall out is during the first year. 29% of new businesses never make it into their second year. And 65% of businesses close their doors within the first 5 years.
Research shows that the biggest cause of business failure is the lack of a Strategic outlook. People who start businesses tend to be very focused on operational issues. The preoccupation with working in the businesses causes an almost exclusively Operational Focus.
The lack of a Strategic outlook means that little attention is paid to laying the foundations that business success is built on. Because Strategic Action is not taken in the business, it stagnates. And gradual decline follows. Even if you get through the first five years, you aren't home and dry yet.
Many businesses that manage to get through the first five years, also lack that all important strategic outlook. For them, a different set of problems arise. Initiating strategic outlook enables business techniques you will need to become successfully occupied for the foundation, which is the first building blocks of any business.
About the Author: Abe Cherian is the founder of Multiple Stream Media, a leading performance-based Internet advertising company dedicated in helping small businesses create online presence, brand recognition and online automation. Main company web site: http://www.multiplestreammktg.com