How To Overcome Business Failure and Thrive

Did you know 93% of new businesses fail, and the scary part is the longer you're in business the more likely you are to fail. 

Look around you, how many businesses have survived longer than 12 years?

It is truly an accomplishment to even make it past the first 12 months, and it's only downhill from there. 

But it doesn't have to be.  

82% of businesses fail because of cash flow problems, and this can be solved by one simple trick.

By setting SMART goals.

I don't mean quick-witted intelligence, I mean S.M.A.R.T.

Every goal you set should be:

Specific 

• If it is not specific you won't even know if you crossed it.

Measurable

• If it is too qualitative and subjective it is a silly goal, Make it simple and measurable. 

Attainable

• Make sure the goal is possible.

Relevant

• Goal needs to be relevant to your mission and vision, make sure the goal has something to do with where your company is going

Time specific

• Give it a hard deadline.

1. First write down your SMART goal.

2. Write down why it's important. 

• Explain how the goal is important and how it can help you in life, career, etc.

3. List out the potential blockers to your goal.

4. Then list down the steps you need to reach your goals, including the steps you need to overcome the blockers.

People need to know what goals they are trying to achieve, so when you are brainstorming during strategy meetings you can come up with appropriate strategies and actions.

Lets us this example:

If you own a cafe, and spend 4,440 dollars a month in rent, payroll, and fees. But only bring in 3,372 dollars a month in, you have a serious cash flow problem.

Let's come up with a SMART goal for the cash flow problem. 

Specific 

• Bring in a extra 3,000 dollars a month using facebook and instagram ads

Measurable

• Spend 1,500 dollars to generate a extra 3,000 dollars

Attainable

• For every dollar you spend on facebook ads you get back 2. This is entirely possible. Most facebook ads can easily achieve a 5 to 1 ratio.

Relevant

• If you spend 1,500 on top of your 4,440. You would spend spend 5,940 dollars

• Spending 1,500 dollars would generate you 3,000 dollars which puts you at 6,372 dollars 

• This would fix the cash flow problem and generate a stable sources of new income

Time specific

• Facebook ads take time to test so let's give ourselves 2 months to accomplish this.

1. Why is this important:

The amount of money flowing out of the company is less than the cash coming in. 

This will cause me to have less money in the business, which could stop me from making payments to suppliers, repaying loans, paying the bills and running the business effectively.

So this is something i need to solve ASAP

2. List out the potential blockers to you goal:

Facebook could not approve my ads.

3. I could be wasting my money with ads?

What if I am not targeting the right people?

What if no one buys from me?

4. Then list down the steps you need to reach your goals, including the steps you need to overcome the blockers:

Make sure my ads are in compliance with facebook.

Shut down the worst performing ads to cut losses.

Test different audiences and see which ones work.

Use your previous testimonials to show social proof.

There’s plenty of ways to do this and it’s doable for every single business, yours included. If you want to know how we would do this in your business, get in touch with us today. - Krishna Krishna Results

Marketing in Memphis