How to Reduce the Risk of Business Failure in 2021
Business Failure is a real thing. 96% of businesses fail in the first 10 years.
50% in the first year.
The longer you are in business, statistically the higher the chance you’ll fail – it’s kinda like being a GLADIATOR!
But, if you want to reduce the risk of business failure in your coaching business, follow these 3 strategies:
- Get More Financial Clarity
96% of businesses fail because they don’t have clarity on their finances. They can’t read the dials as the plane enters a period of bad weather and they end up crashing as a result. If you know what is happening with all your KPIs*, you can adjust your business strategy ahead of time and identify any key risk factors.
- Raise Your Levels of Cash
A simple way to reduce risk is to hold 6 months to 12 months worth of fixed costs in your business at any time. That way, if there is a shift in market conditions or a pandemic that affects your business negatively you can ride it out or have time to pivot.
- Set Up a Backup Plan
Most strategic plans do a great job of setting goals, but they don’t prepare you for when things go wrong. Create different scenarios and ask yourself what happens, how will you react, if you get knocked down or out? Can you get back on track and win the long game?
*Key Performance Indicators are data points that can indicate performance in your coaching business
If you have a coaching or consulting business and you want to improve your financial intelligence you may book your free strategy session here.
Do you know which areas of your business are underperforming? Take our GROWTH assessment and we’ll send you a tailored growth plan for free.