Why is it that so many new businesses fail within two years?
With all the well meant advice around, why is there still such a high failure rate?
Bankers must always advocate caution, yet others will say "nothing
ventured, nothing gained"
It's true that business is about people and the chances of success are greater if the owner leads from the front, with a
clear vision and the skills to communicate that vision... if only all staff
share the same vision.
Accountants can highlight areas where costs might be saved, and that
should help in future, but unfortunately you can't unring a bell can you.
Clearly, there will be no banker, staff or accounts unless the goods or service can be sold for more than they cost to supply,
plus support the overheads. That goes without saying, doesn't it?
The reality is that
no single individual can be expected to keep their head around all of the dynamic causes and effects
of business, all of the time.
But most of it is simple arithmetic. Costs exceed income = loss.
Purchases + wages + overheads exceed sales = gurgler.
In this computer age, arithmetic is almost instantaneous.
And most businesses or their accountants today have access to a computer somewhere. So why are businesses still failing?
Presuming that the goods are marketable, could a factor
also be the lack of proper software?
believe it could.
Where are all the really user friendly, integrated programs that...
Accurately and reliably estimate production times and
Instantly compare the effect of any alternative
structure, such as leasing new machinery,
or adding staff versus outsourcing componentry and so on and so on?
Well here's the good news.
Most computers already have perfectly adequate software installed. Spreadsheets such as Excel.
All they need, is someone to convert the productivity information that you or your records
may already have, into formulae that spreadsheets can use to generate
results in meaningful ways. And if you don't yet have the information, it can
certainly be gathered.
We can bridge that gap. It's that simple.
We call it Cost Prediction Software. It is a combination of common
Based Costing (ABC), math and spreadsheet
Remember that, according to the
US Small Business Administration, nearly 80% of businesses that
fail are the result of incomplete or inaccurate costing.
This site includes an interactive spreadsheet
for quick, budget prices, online and a quotation request form for
stainless steel spheres. To create the quote, the information submitted is
through a spreadsheet, which generates the letter that is emailed
to the enquirer. As many times as he or she cares to submit.
If you could use such a
powerful sales tool, email us
You only need a simple spreadsheet.