I talk to potential business owners and even those who have been in business for at least 3 years and discover that they thought business ownership was going to be easy. Even though they have heard the statistics that start up businesses don’t survive the first two years of business and that government data shows that only 5 out of 10 new businesses survive for 5 years, many are still convinced that it’s a pretty easy road to tow. What they fail to realize is that ALL businesses, start- ups and existing, will face 3-D (delays, difficulties and dead ends). One characteristic you must have as an entrepreneur is PERSEVERANCE because you will face many unexpected challenges in business and you must be prepared to handle them and set free.
Let’s look at some examples of 3-D that businesses face and some ways they can be delivered.
DELAYS: You have been diligent in putting your business plan together and ready to take it to the bank for funding. Eager to get the business up and running the bank is requiring additional paperwork, financials, etc. So the funding process has been delayed from 2 weeks to 6 weeks.
DELIVERY: Be proactive and eliminate the delay. Make sure you have all your financial documents prepared. Ask the bank their requirements. Usually they request the following:
?� Balance Sheet
?� Income Statement
?� Cash Flow Statement
?� Business Documents
?� Detailed list of assets and proposed collateral
?� Personal Financial Statement
?� Credit Reports
?� 3 years of personal tax returns
?� Business Tax return (existing businesses)
?� Business Plan and Marketing Plan
?� Sources and Uses Plan
?� Loan Request Package
DIFFICULTIES: A common problem for many business owners is that they think they can do everything on their own. They use the excuses of “I can’t find qualified people” or “Nobody can run my business like I can. I don’t trust anyone with my baby” or “I can manage this alone until business grows”. This “one-man band” strategy may seem like a way to keep costs low at first, but it’s not the smartest way to ensure long-term success. It will become more difficult to control as time progresses. Plus being a “one-man band” does not give you the opportunity to work outside the business because you are inundated with handling the day to day operations.
DELIVERY: Utilize your network of contacts or social media to find referrals for qualified, professional employees. If you cannot afford to hire a lot of employees contact trade schools, colleges or universities for interns. They may be available for free or a small stipend.
DEAD ENDS: The business is at a standstill, sales have declined and the need for your product or service had diminished. Your business has come to a dead end.
DELIVERY: A couple of options come to mind. First, try to adapt to the business to make it work. Consult with a business advisor to assist in identifying the problem and consider resolutions. Do you need to target different customers, change your pricing structure, leverage the existing infrastructure, etc.? Secondly, see if there is an opportunity to change directions and create a derivative (a specialized company created out of a broader company). For someone who has a computer sales business the derivative might be a computer repair and maintenance business.
Delays, Difficulties and Dead Ends are a part of the business lifecycle which forces us as business owners pause and think about the method of Delivery so that our business can be successful. That delivery is the release needed to accomplish other things in our businesses.
