GALT Consulting LLC

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4) Poor Planning - Really, poor planning is a root cause of most business failures.  You can get past a lot of mistakes and weaknesses if you have good planning that utilizes your strengths and focuses on your passion.  Many business owners think they are too busy to plan, and this is often true.  However, if you don't MAKE time to plan, you will be extremely busy right up until you find yourself in a hole that you may or may not be able to get out of!

5) Inability to Sell - This is a common weakness of almost every new business owner.  You have a great product, but you are unable to sell it.  I'm not talking about an owner's ability to connect with people and communicate effectively.  I'm talking about understand the basic fact that businesses do not sell products or services... they sell value.  A friend of mine who is a golf pro recently flipped his sales approach from talking about the high tech equipment he utilizes to talking about how he can help get your game to the next level, and this new approach has worked very well.  Doctors don't sell medical exams, they make you feel better.  People don't buy Harley's because they want a motorcycle, they buy it because they want the feeling of freedom.  (Special thanks to my friends Brett Curry - Curry Marketing, and Glenda Coble - Midwest Family Broadcasting for contributions to this article).

The Small Business Administration of the U.S. Government estimated in 2006 that 50% of small businesses will fail within the first 5 years.  Data on the reasons why businesses fail is poor, largely because the factors that lead to failure are often complex and not well understood.  However, various authors and experts agree on some of the most common reasons.  I have compiled some here...

1) Denial - Business is personal, regardless what the Godfather says.  All too often business owners don't like to look at the whole picture, preferring to focus on the good news.  I have seen restaurants who are losing money on every plate of food they put out.  I have seen manfuacturers continue to make widgets even though the widget market is falling out of existence.  Cure: Look fo an outsiders perspective on your business.  Confront the brutal facts (as Jim Collin's says in his book, "Good to Great").

2) Lack of Passion - The Kingsley Group, a business brokerage firm in Springfield, did an informal study a few years ago on what factors make a company successful.  They looked at all kinds of financial indicators as they had unusual access to data.  They found only one trend.  Passion.  Owners who are passionate about their business are more likely to succeed.  Owners who are just in it to make money or make a name for themselves are very likely to fail.  Cure: Find the unique value of your business and become its biggest fan.

3) High Capital Burden - People starting a business are programmed to imagine that they must invest a lot of money into the business.  Many borrow money to purchase the business, launch an initial ad campaign, set up a website, and buy the best office equipment/furniture they can find.  Many others sign a multi-year lease agreement.  These all put a monthly payment load on the business, which means it will be that much harder to survive.  MANY businesses doom themselves to failure before they ever open their doors.  Cure: Challenge yourself to avoid these reoccurring expenses.  Start by doing your own website.  Do you really need an office?  Can you find some cheap furniture?  Is the business really worth that much?  Wait until you have a steady stream of income before committing to a monthly payment.

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As we continue to recover from the recession, I hear many business leaders talking about returning to "business as usual".  I must confess that I cringe when I hear this.  "Business as usual" is never a good business philosophy, because there is simply nothing "usual" about business and the ever-changing market.

As a friend of mine who runs a business called some of his employees together and shared an article on the state of print media.  Newspapers are struggling.  This is not a good or bad thing, it is simply a shift in technology and in the market.  The internet provides many people with free news that much more current than any newspaper can possibly be.  The only newspapers that are doing well are the ones who provide insightful, expert insight into the world.  The mistake made by much of print media is they thought they sold paper and ink and forgot that they really sold information.

The world is truly changing and those who focus on products and services or even specific technologies will be left behind.  Businesses who focus on the value that they provide to their customers and who constantly work to find new ways to deliver that value are the ones who will thrive in the new economy.  Customers are becoming increasingly able to absorb value in new and more efficient ways (ex: through social media and the internet).  However, it is a critical and fatal mistake to believe that the technology is driving the value. 

What value does your business provide?  What is unique about the value that you provide?  Answering these questions is critical to survival in the new economy! 

"I didn't know how I would ever be able to develop and implement my business marketing ideas until I met Don Harkey. He said, "I can help". I knew at that moment, I had found a treasure, and a weight was lifted off my shoulders. Creative, talented, practical, ethical, positive. An awesome leader, personally, and in business. He is continuing to help me get my business off the ground, and I am forever grateful. He introduced me to BNI! Now, I want him on MY team. YOU WILL TOO! Thanks, Don!"

Jennifer Ott - owner of JAZ Aesthetics

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Last year, I spotted this picture of Ron Spigelman, director of the Springfield Symphony Orchestra, in the Springfield Business Journal.  I immediately wrote to the editor and purchased the print from the photographer.  I often talk about how important it is to be really passionate about what we do, but sometimes it is a "fuzzy" concept.  This picture shows it better than anything I could say.

Without hearing the Symphony, do you think they are any good?

If you want to hear them, you can hear clips HERE, but I think you get my point!

Welcome to the new Galt Consulting Website!  The blog section will include updates on recent or upcoming events, and also tips/information or success stories.  This is a resource for you, so feel free to ask questions!