Why Do Small Businesses Fail – Part3

In part three of this trilogy I make no apology for offering more than just an opinion but in fact offering a solution that I am confident works. This confidence comes from my own personal experience, gained during my own journey. I have learnt as I have progressed my business month on month, with what looks like a simple solution, the results however expose the significant value it brings.

If you’re willing to accept that the majority of situations, many mentioned in part 2 of this series, are in fact the symptoms of something else, you will begin to understand my stance that you need to drill down to find the true and only root cause to most significant business failure.

If you have not read part one and two then let me remind you that it is my contention that most, if not all small business failure will come down not to a lack of something tangible, like sales or cash or marketing, or planning, but what I will call ‘The Human Element.’ It is this element that is for the most part responsible for the early failure of many a small business.

In reality this all comes down to the mental attitude of the individual and their levels of EQ or if you prefer Emotional Intelligence. Let me explain, it has been proven empirically on numerous studies that the business leader with high EQ will fare better than the leader with low EQ when it comes to business survival. This is simply because with good levels of EQ comes greater discipline, greater planning, calculating of risk and risk taking only when the outcome is tested as far as it can be.

The higher the EQ, the greater the communication skills, the greater the ability and willingness to learn and the more control over emotion, in turn making decision-making more effective and logical.

The great news is EQ can be learnt and developed and while that is being done there is a solution that I have used that will keep you on the path to success and away from the cliff edge of failure. I can certainly help with the financial health and compliance of your business; I can even help strategically. But in addition to this I would also urge you to look at my other business, called Rainmakers Club, for which I am a director. Rainmakers Club will not only assist but will educate and help with that all-important development, keeping you clear of the edge of the failure cliff. Of course, this solution only works if you heed the advice and support given.

If you would like to know more, I will happily have a chat with you, in the meantime remember business requires constant learning and has no room for out of control ego, so often the cause of stagnation or irrational risk taking!

This is not the end more the end of the beginning of a subject that is well worth following. In our next post we will start to look at the individual components of EQ.