BUSINESS STRATEGY CONSULTING: Keeping Businesses Alive
Small businesses in the United States account for a little more than half of the nation's private sector workforce. Yet far too few small business owners even consider hiring a third party to help them organize and manage their business outside of day-to-day operations. With more than fifty percent of small businesses failing every year, it is critical that Mom and Pop owners begin rethinking their attitudes toward business strategy consulting if they hope to survive.
In 2008, US statistics showed that a little more than six-hundred thousand new business were started. Over five-hundred and ninety-five thousand closed their doors and more than forty-three thousand filed for bankruptcy protection. Approximately 70% of new employing businesses survive for two years, while only 50% are able to stay afloat for the first five years of operations. These startling, statistics speak for themselves.
But Meg was never daunted. As a single mother and a trained butcher, she had a dream! She wanted to retire early and travel for the rest of her life. And she was lucky! Meg found the niches that even the likes of the Starbucks' marketing smarties hadn't found. She invested her money and spirit into the entire process full throttle. Her business focused on filling the caffeinated gaps at concerts, sporting events and several large area hospitals.
For more than a decade she was successful enough to gross into the high six figure range every year. She spent her draw on a million dollar house, bought into vacation clubs and took exotic vacations every year with her family. After a dozen or so years, Meg was exhausted. Her goal starting out was to build up the business and sell it for a profit. Even though she had invested wisely in real estate, she never invested in a sound branding strategy. Her operational plan was non-existent and even after fifteen years she had no clue what her business was worth or what her annual revenue at any location was without researching it. Poor Meg!
Every small business owner can benefit from having a professional help facilitate their strategy at the onset and during regular quarterly or semi-annual checkups. Why is it that business owners who will see a doctor if they feel ill, hardly ever seek out 'medical care' for their dying business. Far too often it is only their ego that gets in the way.
Sadly, Meg never stopped to consider building a strategy to help her reach the original goal of being able to 'work less' and 'retire early'. Even when presented with 'no cost' consulting opportunities from her brother's new wife who had been consulting for Fortune 100 corporations for a quarter of a decade, Meg dug in her heels. She wanted to be in charge even if it meant ultimate failure. After all she thought she had a pulse on the market and continued to improvise accordingly.
No wonder nobody wanted to buy her business. When coffee wasn't moving fast enough, she sold popcorn and kept the name of the coffee business as the trademark for her popcorn shop. When popcorn wasn't bringing in enough revenue she sold hot dogs. All the while keeping the company name and branding as "Java Time". When people got tired of hot dogs she sold Smoothies. And on it went! Meg's operational tactics were based on her lack of education, experience and branding. The business suffered as did her dream.
Even now Carol doesn't see a need for business strategy consulting. She doesn't want to spend money on anything that she feels isn't necessary. Her original dream never came to fruition, yet she is convinced that through more hard work she will someday reach her goal. Like many small business owners, Carol Richards filled a market need but failed to fulfill her own desires simply because she didn't understand the importance of building and sustaining a strategy with the help of a third party consultant.
