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Business Myths 

Myth – Entrepreneurs are essentially risk taking individuals.

Reality - It’s not so much about risk, it’s to do with risk /reward - successful enterprises are adept at synchronizing opportunities, capital requirements, cashflow management, timelines and assessed returns on investment.

Myth – Having a vision / concept / idea is more important than details.

Reality - Planned and considered processes are essential in building a genuinely viable business. The majority of savvy business people attribute success to ‘the extraordinary implementation of an ordinary idea’.

Myth – Make sales and profits will follow.

Reality - Concentration on sale volumes can frequently lead to profitless or marginal revenues. Continual focus on improving margin quality via the contribution rate and sales mix is more productive in generating positive cashflows and profits.

Myth – Businesses have a high failure rate.

Reality - Statistics for ‘failure’ include people folding or selling the business – for sure this is often the result of a business simply not working out. Actual legal failures (bankruptcy) amount to around 2%-3% per year.  However, it is definitely true that many small businesses remain precariously balanced, especially in times of restricted credit.  Dun & Bradstreet (2010) research indicated that 46% of small businesses experienced negative cashflow and that 80% of business ‘failures’ are directly attributable to poor cashflow management. 

If starting, developing or expanding a business - it’s how you go about it that’s important - and our ebooks are a great help in getting your business ideas on track to a successful future. Each is priced at $16.50 (including GST).