How can your business thrive?

There are several common factors that contribute to the failure of SME’s in the UK. Engaging with a proven strategic and commercial business advisor will help to mitigate these risks:

Lack of Planning - Many small businesses fail to have a well-thought-out business plan that outlines their goals, strategies, and financial projections. 
 
Strategic – Operational Disconnect: Even those businesses who have a defined Strategic Growth Strategy often fail to drive the appropriate actions required to deliver the strategy…My motto is ‘Live the strategy!’.
 
Insufficient Capital: Inadequate funding is a significant challenge for SME’s. Insufficient capital can result in cash flow problems, hindering their ability to invest in necessary resources, cover operational expenses, and sustain the business during tough times. In a post-covid world, many businesses have little cash reserves.
 
Limited Market Demand: Businesses that fail often struggle to identify and meet the demands of the market. Understanding their target audience, conducting market research, and adapting to changing consumer preferences are crucial for sustained growth and success.
 
Ineffective Marketing and Sales: If a business fails to effectively promote its products or services, it may struggle to generate sufficient sales. SME’s need to develop robust marketing strategies, build a strong brand, and effectively communicate their value proposition to attract customers.
 
Poor Management and Leadership: Inadequate management skills or a lack of experience in running a business can lead to failure. Business owners must be competent, (or have access to) expertise in every aspect of business.
 
Competitive Pressures: Competition can be intense, especially in crowded markets. SME’s need to differentiate themselves, offer unique value, and develop sustainable competitive advantages to fend off competitors.

Inadequate Adaptation to Change: Markets, trends, and customer preferences are constantly evolving. SME’s that fail may struggle to adapt to these changes, resulting in outdated strategies or offerings that no longer resonate with customers.
 
Poor Financial Management: Lack of financial expertise and improper financial management can be detrimental to SME’s. They need to accurately track their finances, manage cash flow effectively, control costs, and make informed decisions based on financial data.
 
Personal Factors: Sometimes, personal reasons or circumstances can contribute to the failure of SME’s. Issues such as family commitments, health problems, or a lack of passion or commitment to the business can hinder its success. Succession planning and business resilience planning is therefore critical.
 
While these factors contribute to the failure of many SME’s, others thrive by addressing these challenges effectively by attracting the necessary talent and third-party advisors. 
 
Which of these areas would you like to strengthen in your business?

We can help you build a better business.