Preventing Failure

Public Relations will help to Stave off Failure
You cannot rely on your normal advertising and promotion sources to create public exposure to your business that is needed to survive. Take a lead in public relations because your target audience needs to know that your company exists and that you have something that would be a benefit to them.

" People act on their perception of the facts rather than reality ..."

From then they must be motivated to take action and buy. At the root of it all is the simple truth that we tend to forget - people act on the perception of the facts rather than reality. If, as a small business owner, you want to bring over a good perception of your business you will have to deal promptly and effectively through the use of public relations.

Some of the perceptions include the following:

  • If your customers don't remain convinced of the value of what you have to sell, you will lose them.
  • If your target audience is unaware of your products or service they will not become customers.
  • If your staff believe you don't care about them, productivity will suffer.
  • If residents in the area don't perceive your business is a good place to work, you will have employee hiring and retention problems.
  • If your insurance company perceives your business is a bad risk they will increase the premium because of this.
  • If journalists feel you are not out in the open and not prepared to come clean on all areas, they will question your motives and this will result in bad press.
  • If business people believe what your competitors say about your business, attracting a venture partner or other organisation to work with you will be difficult.
  • If the government regulators believe your products are not safe, they can cause problems by bringing restrictions on your operation.

Small businesses always have limited resources, but there are certain things that can be done to give you cost effective promotion.

Tips on Dealing with a Floundering Business
Often we find in our business that whatever we do does not appear to help very much. We sometimes find that our business is always running on the brink of failure.

Here are some tips to help you if your business is floundering:

  1. Carefully review every step you have made and see if there are any areas that need improvement.
  2. Concentrate and focus on your objectives, and try and look forward rather than backwards.
  3. Be clear of what you have accomplished and be proud of how far you have come.
  4. Carry out more market research or other things to help you get the knowledge to improve your operation and its processes.
  5. If you desire, run more than one business venture at the same time because you will find some will work while others will not.
  6. Persistence will be the key. Try and stay with your business idea and refuse to give up.

The Last Word on Preventing Problems
Owning a business becomes one of two things. Either you have fun and run an operation that is making you money, or you have simply bought yourself a job. Successful business owners are people who learn their business. They use the advice of their accountants, but they familiarise themselves with the basics of how to read and understand a simple profit and loss statement.

The successful business owners do not leave it all their financial advisers. They get involved and pick up basic knowledge through business courses or reading books, or taking a night class. They don't get surprised when things happen in the marketplace. They do their homework and they learn from what their competitors are doing.

You can do a lot to prevent your business from failing.