Small businesses make up the majority of all businesses and create more jobs than large firms. Essentially, small business is a necessity for the economy, locally and even nationally. However, the survival rate of small start-up businesses is approximately two-thirds for the first 2 years. When it comes to successful owning and operating a small business, two years isn’t really that much time to prosper. What are some of these small businesses doing wrong?
Many factors influence the reason for small business bankruptcies and failures; lack of education, lack of capital, overconfidence bias and lack of organization and planning. The good news is most of these can be avoided with the help of management consultation. Management consulting oversees small businesses’ strategies and goals, giving them the opportunity to not only succeed in the first 2 years, but to prosper in the long run, as well.
More often than not, small businesses have a difficult time with organizational skills. The owner and operator may take on more responsibility than typically seen from a boss or manager. On top of that, small businesses may lack the proper education of how to organize a business effectively.
Highly organized businesses have a greater chance of succeeding than those that aren’t. Small businesses may find it difficult to manage an entire business properly, due to a large and potentially overwhelming work load, and lack the understanding for the necessity of organizational skills. However, with the lack of time or knowledge, small business owners will soon realize the need for organization, which is where management consulting comes to the rescue.
Once businesses corroborate the need for organization, but don’t know where to start or have the time, management consultation companies assist by finding ways for these businesses to build a set of organizational skills and form synergy in their operations.
Forming clear, integrated and attainable strategies and goals are
arduous as it is, but implementing and achieving them will face greater
challenges. Small businesses, especially start-ups, must understand the
importance of forming and achieving goals and strategies effectively and
efficiently. A distinct mindset of what a small business wants to
achieve may seem reasonable in terms of pursuit and completion of its
objectives, but realistically the chances of that actually occurring are
lower than one would think.