Entrepreneurial literature contains extensive discussions and analyses of the high failure rate of start-up businesses. What is rarely discussed, however, is that on a per capita basis, the failure rate of small and medium sized businesses in the growth phase is comparable to that of start-ups. Among the reasons for this are the following:
- Minimizing the focus on cash flow and profitability for the sake of growth.
- Minimizing the focus on value creation.
- Having the wrong people in the organization.
These reasons can be explained by the fact that 75% – 80% of small and medium sized businesses do not plan beyond what is required to obtain financing in the start-up phase. Effective planning facilitates greater opportunities to create valuable enterprises. We assist business owners and their leadership teams in the development, implementation and outcome measurement of plans to ultimately increase the value of the business.