On Not Becoming a Statistic...

A Forbes article published this week offers some stark statistics for the Small Business Owner. According to data provided by the Bureau of Labor Statistics, only 44% of small businesses will survive into their 4th year. Depending on what kind of gambler you are, those less than 50/50 odds can be a pretty harsh possibility for a venture you've poured your hard work, dreams and money into - betting it would be a winner. But rather than be discouraged, you can pose the question, "What can I do to make sure my business is part of that 44% who are thriving?"

The list to consider is as long as the many hats that your wearing...

• Business Planning
• Sales & Marketing
• Finance & Accounting
• Product, Inventory Management
• Labor Management
• and everything else

The key is knowing when and where things are going right and when and where things are going wrong. A few questions to consider:

• Who is buying?
• How quickly they are paying?
• What's your spending?
• What are you spending on?
• How much money you have tied up in inventory?
• What's your gross margin? Return on Sales?

Maintaining accurate and up to date financial records, and understanding what they are telling you, is key to building a strong, healthy business. The Income Statement, Balance Sheet and Statement of Cash Flow are the tools that will provide you with the answers you need to make informed decisions about your company.

Arm yourself with the right tools and you will put the odds of success in your favor!