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Alex Kasich & Associates
Questions and
Answers
Why Bother with Small-to-Medium Sized Businesses?
According to statistics, in the last few years of the 20th century,
98.2% of all businesses in the United States employ fewer than 100
people! These figures clearly illustrate the importance of caring for
the small business, rather than aiming initiatives at the larger
companies who can already afford management expertise and a full board
of professional directors.
The small business owner has no
such facility and is expected to know everything, keep up with
everything and do everything themselves. Clearly a very unsatisfactory
situation.
What About Practical Assistance?
Further research, both by the Institute for Independent Business and by
several academic organizations, have indicated that the small business
sector required not only information and advice in order to survive and
grow, but also practical assistance, preferably from more mature
business executives who had "been there, done that." In order to be
effective, a practical implementation phase was also required.
It was
also evident that traditional consultants were inappropriate and
generally unable or unwilling to fulfill this need, as their cost
structures and style were generally not appropriate to the small
business sector. Many mature business executives have excellent skills
and knowledge which could be deployed in the small business sector, if
only the correct means of delivery could be established.
Who Are the Institute for Independent Business Executive Associates?
All Institute for Independent Business Executive Associates, who meet with small business owners and directors, are
themselves senior executives from any and every profession, background
and industry imaginable. Nearly all of the Institute executives are mature
business people over 40 years old, with the average age being 54 years, who
have been Chief Executives, Directors or Executive Board Members.
All
have experienced first hand the pressures, stresses and joys of running
a business. Many started up, ran and eventually sold their own
businesses and others have run some of the best known businesses in
the world.
Why Does a Business Fail?
There are many reasons why a business might
fail or lose steam. The sad truth is that almost all businesses
will go through a period of peaking and stalling in growth, and even
worse, a majority of them will fail within the first three years of
existence.
The goal is to get small-to-medium sized businesses through those stall
periods and back into growth mode, while helping the owners achieve all
of the goals they originally had when they started their business.
This is done through the Business Support Plan.
All business owners eventually need help. The successful ones put aside
their pride and desire to be at the center of all aspects of the
company and get the help. The following is a list of the major reasons why
businesses stall or fail. If your company can identify with one or more
of them, please don't wait until it's too late to get help.
- Failure to Use a Business Plan
- Lack of Clear Attainable Goals
- Not Knowing What the Customers Want
- Underestimating the Competition
- Inability to Change
- Inefficient and Inadequate Systems and Procedures
- Inadequate Financial Plan
- Not Knowing the Real Costs of Products and Services
- Not Knowing the Costs of Hiring Employees
- Lack of Vision
- Lack of Consistency
- Ineffective Marketing, Advertising, and Promotions
- Not Knowing What the Customers Need
- Poor Quality Service
- Low-Level of Customer Satisfaction
- Lack of Funding
- Negative Cash Flow
- No Repeat Business
- Failure to Adapt to Market Changes
- Poor Controls
- Over-Diversification
- Poor Location
- Over Dependence on One Product, One Customer or One Supplier
- Excessive Overhead
- Government Red Tape
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