When a business owner starts their own business, they have high hopes and big dreams. It’s important to have a positive outlook when starting your business, but it’s even more important that the business is managed well. In most cases businesses fail because of poor business management.
Through the years I have helped a lot of business owners to deal with their debts. In most cases the businesses didn’t fail because the fundamental business was bad or because of poor workmanship.
The main reason why businesses fail is because of poor business management. I often say, “do what you’re good at and hire people (or get help) with the areas that you’re not good at”. There is nothing more sad than seeing an otherwise good business fail because of poor management.
I could list a number of cases where the person that I was dealing with was an excellent mechanic, carpenter, doctor, etc., but a terrible business man. The most common causes of business failure I’ve seen are: not properly filing tax returns, poor billing and accounting practices, inability to manage staff and business expenses. All of these issues can be easily remedied by getting the right professional assistance.
Being a good “business man” and being successful in business are not the same thing. You can be extremely successful in business despite being a poor “poor business man” provided that you identify your weak areas and get the help you need.