Research Cites The 5 Dangers Common Across All Small Businesses

Posted on June 20, 2007 by

Left Unaddressed Causes Business Failure

Southbury, CT – New research sponsored by The Entrepreneur’s Source cites a short, but compelling list of dangers that typically cause business failure and that are prevalent across the board, in all businesses – independent of industry or sector.  Focusing on the dangers or not can be the difference between being a player in an industry or another statistic of business failure. 

“Our research has already identified the challenges or problem areas that all business owners are most likely to face,” Terry Powell, CEO of The Entrepreneur’s Source said.  “Business owners can now quickly identify their issues preventing them from success and then move to the rapid impact solution needed to increase performance and revenue.”

These findings state that traditional consultation, where consultants spend valuable client time and money identifying problems within a company, is not always an effective approach. 

Career and business coaching is a new emerging paradigm combining the expertise of advisors with the efficiency of a coaching team providing solutions.  The business-to-business (B2B) coaching and consulting industry is a multi-billion dollar market.

The 2007 research found that businesses are weak in one or more of the following areas:

    1.   Financial Management (Cash flow)       

• Cash flow problems are responsible for over 70 percent of business failure with their first year.

    2.   Human Capital (Selection, Retention and Training)

• The mismanagement of human capital is the main reason that “good” companies never become great. 

    3.   Planning (Business and Marketing)

• The majority of companies pursue projects that are incompatible or inappropriate for their resources and capabilities.

    4.    Sales and Sales Management

• Under performing sales people bring in at minimum 50 percent revenue than top performers.

    5.    Communications Leadership

• The beginning and end of all failure in business lies with the people who make the decisions every day.

“When business owners lose sight of their goals, it is often because they don’t have the ability or are unwilling to see beyond their blind spots and take immediate action,” says Terry Powell.  “Working with a Coach can help a business owner remove the blinders, see their company more objectively, and make fact-based decisions in an effort to increase performance,” Powell added. 

About The Entrepreneur’s Source

The Entrepreneur’s Source (TES) is North America’s leading career and business coaching company with more than 250 offices in the United States and Canada.  TES offers a full-range of services to individuals seeking alternate career options and to small-to-medium size companies looking to increase performance.  The goal of the Entrepreneur’s Source is to partner with both individuals and companies to achieve their desired outcome.