starting a business: guidelines for success
by reeta bochner wolfsohn, CMSW

According to the Center for Women’s Business Research (nfwbo.rog), women’s businesses have been growing at twice the rate of all firms. Women start their own businesses for many different reasons. Some do it out of necessity (to support their families). Others do it to circumvent the glass ceiling. Still others do it because they have a product or an idea they believe no one else has. Many do it because they think it will allow them to set their own schedules, give them more time with their families, and enable them to save money on child care and commuting.

Experts say that 80% of all new small businesses fail in their first five years. Starting and growing a business can be exciting and challenging, but it is rarely easy and usually is a far different experience than anticipated and much more demanding than expected. For some it turns out to be exactly what they want and need in their lives, for others it does not.

While there is no set or simple formula for success, there are principles and practices that either jeopardize or optimize the potential for a business to succeed.

10 Reasons Businesses Fail
In an effort to assure that your business isn’t a business casualty, ask yourself which of the following you need to attend to today to make sure that you’re still in business tomorrow.

1 Inadequate preparation (no business plan, no cash flow projections, etc.).
2 Undercapitalized (for startup and follow-through).
3 Inexperience (customer service, hiring, staff development and supervision, etc.).
4 Poor credit practices (with vendors and customers) and incomplete or inaccurate record keeping.
5 Failure to develop a strong professional support team (banker, accountant, bookkeeper, lawyer).
6 Insufficient or ineffective marketing.
7 Growing too quickly or too slowly.
8 Focusing too much or too little on the competition.
9 Incompetent, uncaring or untrained management or staff.
10 Lack of direction for the business.

10 Reasons Businesses Succeed

As you read the list of reasons that businesses succeed, congratulate yourself on the ones you’ve already mastered; then start working to improve upon the ones you have not!

1. The business has a well-developed business plan.
2. The business constantly focuses on making a profit and consistently works to create and to retain customers.
3. The business implements strong and strategic marketing to its perfect customer—the person who will benefit most from the product or service and has the resources to pay for it.
4. The business has a clearly defined product or service niche, and every effort and activity is directed at helping customers to make favorable buying decisions that benefit the customer and the business.
5. The business product(s) or service(s) and customer service are superior and meet or exceed consumer expectations, so it builds repeat business and gains referrals from satisfied customers (word of mouth).
6. Experienced, knowledgeable, and resourceful people with excellent inter-personal and supervisory skills manage the business and develop positive, respectful work relationships with employees, suppliers and business associates.
7. Costs are kept down, quality is kept up, and pricing is kept profitable.
8. Cash flow, business growth, product development and inventory are carefully monitored and managed.
9. The business owner(s) has/have clearly defined and measurable personal and professional goals that are continuously re-evaluated, prioritized and updated.
10. The business owner(s) has/have a strong personal and professional support system to help them to manage the challenges of owning and growing a business.

Reeta Bochner Wolfsohn, CMSW is the founder and president of the Femonomics Institute (femonomics.com). She is a therapist, author, and consultant who has appeared on the “TODAY” Show and been written about in numerous national publications. The Femonomics Institute provides counseling, support groups, products and programs that help women to create long term emotional and financial security. (828) 658-1919.