Unfortunately, 80% of small businesses fail within the first two years. Don’t be part of that 80%, be the 20%! Julian Campbell offers some tips based on his past experiences as a business coach and director of Catalyst for Growth. He observes that many of these 80% that fail do not plan ahead. Seems simple, right? In order to have a business, you need a plan to survive. Julian says there are two documents that every business should end up with: a business plan/action plan and a cash flow budget.
Having a business plan or an action plan is important for every type of business, not just a small one starting out. It is necessary for new businesses so that it can help keep them on track for their goals as a business. It is essential to express their plans and what they hope to achieve with this venture. Having an action plan will also help keep a business accountable, to set realistic and relevant goals, and to ensure they don’t give up or veer in the wrong direction. It will help plan for the future and determine risks that may occur. It doesn’t have to be something that is set in stone, it can and should be flexible so that a business can adjust as life happens.
The second necessary document is to have a cash flow budget. This doesn’t have to be something elaborate or something that requires an accountant. It is a budget plan to help keep the business accountable and see if they are achieving required results on time. Keeping up with the books is also essential to ensure that the business is staying on track. Without good bookkeeping every day, a business can fail just because they are not collecting the money that they are owed. This can happen even if you are on track to make a profit. You still need to pay your bills while you are waiting for people to pay you! Create a cash flow budget and keep track of any expenditures and cash receipts. This can be a key to building a successful business.
These tasks can seem daunting, even overwhelming and scary. We tend to make excuses for things we don’t understand or don’t want to do. The best advice that Julian himself received was to break a comfort zone every day. This will push you forward. So, if you don’t know how to make a cash flow budget? Reach out to someone who’s done one before. Not sure how to create a business plan? Take a class! Find something online. Ask for help. Don’t let your hesitation limit you, take that step every day and you’ll be amazed at where you’ll end up!
This blog is based predominantly on information given by Julian Campbell during his appearance on The Stronger Than My Excuses Show: ACTION…Physically move, change your state and mindset. See the full episode here: