Give your business what it needs to survive – your attention!

It’s a sobering thought – one we may prefer not to contemplate – but the odds of a business surviving beyond nine years aren’t good.

Statistics from 2019 (in other words, pre-COVID) showed that only 25% of businesses made it past their ninth birthday. Of that 25%, a further 20% of businesses failed between their 9th and 19th anniversaries.

That means only 5 out of 100 businesses survived into their 20th year. Of course, you might not want your business to last 20 years; maybe you plan to retire before then. But how long DO you WANT or NEED your business to survive? And what are you doing to make sure that happens?

Essential questions to ask yourself

To get a good sense of the resilience of your business, ask yourself the questions below. Your answers will help you identify any areas that need attention.

📢 Top tip: As best you can, be curious rather than anxious about this exercise. If you’d like support, we’re here to help you!

About your attitude

❓ Are you making sure you’re getting the sales you need? Or do you get easily distracted by the buzz of coaching programmes, networking events, LinkedIn or Facebook marketing, only to check in with your finances a few weeks later and get a fright?

❓ Are you taking your business seriously or are you approaching it like a hobby? While we highly recommend you bring lightness and fun into your business (life’s far too serious as it is🙂), your clients need to know they can rely on you.

❓ Do you have the right attitude and mindset? Are you putting in the work you need to survive?

Top tip: If you feel your money mindset might be holding your business back, read ‘Successful Business Minds’ by Helen Monaghan.

Cashflow and profit

❓ Are you keeping an eye on your debtors?

❓ Do you give your customers credit? If so, is this putting you at risk?

❓ Do you pay your suppliers and HMRC on time or do you delay paying due to cashflow problems?

❓ Are you always surprised by your tax bill?

📢 Top tip: Make sure you know the difference between cashflow and profit – and remember BOTH need to be healthy.

And now breathe😊

What do your answers to the above tell you? Did you score well or is there room for improvement? What measurements could you put in place to score better (if applicable and, of course, wanted)?

Want to learn more?

👉 Discover 7 practical ways to overcome rising costs – book your slot at this financial resilience workshop on 19th March 2024. 📢 Book before 4th March to get a 50% discount on your ticket.

👉 Join the friendly and supportive team at The Financial Resilience Hub.

ABOUT THE AUTHOR

Helen Monaghan is a Chartered Management Accountant, accredited NLP Practitioner & Finance Coach. Both a psychology graduate and an accountancy graduate, she has authored three business books, which beautifully bring together psychology, finance, and tax to empower the reader about money. Helen is the CEO of HM Finance Coaching & Advisory Ltd, a company that provides financial education and business mindset coaching to small businesses across the UK, in addition to accountancy services for limited companies in Scotland and across the UK. Helen is also the founder of The Financial Resilience Hub – find out how we can support you, and your business, to be financially resilient through our monthly membership.

© Helen Monaghan