Business. A thought, a dream or reality. It can be all of those things. And it can offer of lifetime of learning, satisfaction and freedom. Yet few make it through those early years. There is the start. A time of unbridled enthusiasm. A time where the power of optimism overcomes all reality to paint at times a distorted surreal view of the future. There are the middle years where the trappings of business success can ignite a proclivity toward undisciplined spending patterns and decision making. After all we have made it. Then as the business matures and we tire of the original fascination, lassitude plateau’s the business curve and unless we renew and learn how to jump the curve, the business will decline toward inevitable demise.
Around 30% of Australian business will fail in their first year of operation. After 5 years between 70% and 80% will have been sold or will have failed.
Why is this?
Empirically business can be divided into two broad constructs Currency and Relationships. Currency refers to the creation and subsequent exchange of product or service. Relationship describes the interactions between the players of the trading game. That is everyone involved in your business. To succeed, business must excel in both areas. Good currency plus good relationships equals good business. Naturally luck and the external environment (that over which business has no control) will impact progress. But with a keen ear business can hear the positive and negative signals and act to take advantage of that intelligence.
Baker Business Consultants is a provider of solutions to small business and will shortly be offering a range of services to help you and your business realise your goals for life and for work.