Wednesday, October 10, 2018

Money...it's not always the problem

Often, when I engage with entrepreneurs they invariably think that inadequate funding is the source of their problem. On the surface, it may appear true; but when we take a real look examining the various aspects of the business, we find that there are some aspects of the business that if money was engaged the business would be far worse than it is without the funding.

The most cliched statement, "money follows management" is not just a cute sound bite. It's actually true. With good management, a business operation can address the issues that can cause it to flounder.

Surefire ways showing how the finances will be utilized are presented, often along with the marketing paint brush that includes the following:

  • We are operating in a $x million/billion industry. Just 1%.....
  • The SWOT does not allow for addressing real situations that were previously thought would never happen (Do we really need to say what kind of streets the business can end up on?)
  • Big titles/bunches of keys, and no real resources to back up the rhetoric
  • Inexperienced individuals who don't have the support of a more experienced team (see the previous point, since it is easy to deconstruct that there is no difference between the owner and the management. If incorporated, you'd find you can prepare job letters for employees to get loans, but you cannot get any for yourselves. 
  • NO DISCIPLINE, sometimes you get funding for entities who then misappropriate the funds like it was a huge payday and not something to be used as the plan prescribes. They party spending the money more on entertainment than business. 
  • No governance, who is going to ensure compliance with the plan within the entity? 
  • We are going to use Social Media in our marketing. When probed, there's no real plan. It does not work by throwing enough mud against the wall hoping for some to stick. 
  • Many are unable to answer operational questions of all types. 
I think you're getting the picture. Business is a team activity. Lone Rangers would be seen as owning a job and not having a business, they must work to generate income. Again no systems are in place. 

Many are operating in a red ocean of activity, often competing on price rather than looking at their unique positions to identify what their real model of operation is going to be. 

Take a serious look at your business, get help as needed to assist you in realizing the true potential of your entity. Should you require assistance, visit us at www.bladesandbladesconsultancy.com and we'll at the very least point you in the right direction if we are unable to help you ourselves. 

Have a wonderful remainder of the week. 

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