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So what did it all come down to? Was there a straw that broke the camel’s back or a combination of ongoing issues which bought these once ‘mega companies’ down? There are many myths when it comes to the demise of a business and there needs to be a shift in perception in order to survive.
MYTH 1: Christmas is the ‘make it or break it’ time of the year
There is a lot of pressure on businesses especially in the retail sector as there is a vast increase in shoppers and more people keen to part with their money. However, no good business owner should depend solely on one time of the year. Researching the sale and retail trends of previous years can enable you to plan ahead and provide predictability.
MYTH 2: Focus on profit
This is where big businesses become blind sighted by their own obsession. While profit is a goal for every business, the number one priority should be cash flow. If you don’t have cash flow, you don’t have a business. Good cash flow management means delaying the outflow of cash while ensuring there are funds for other areas of the business to function.
MYTH 3: You must stay the same
Just like nature, business needs to evolve. Businesses must diversify, transform and adapt to a changing environment. Some businesses are scared to change out of fear of losing their identity or intentionally go ‘against’ the market with the intention of standing out. Remember Blockbuster?
There are no businesses that are immune to closure but smart management, planning ahead and the clarity of goals and openness to evolve are key. We help many businesses establish goals, short-term and long-term and put in place a plan to assist in cash flow and annual projections as well as work with you to grow your business.
By Andrew Mattner
Kerri Stutley, Tumby Bay Foodland
Phillip Cross, Royce Cross Agencies