Internal Deficiencies Can Kill a Business

Almost half of the firms that go bankrupt do so primarily because of their own deficiencies rather than externally generated problems. They do not develop the basic internal strengths to survive. This overall weakness in management when combined with a lack of market for their product is why these firms to fail.

The Good News

Yet, every one of these deficiencies is under the control of the managers and business owners and can easily be neutralized with a thorough strategy.

  • Finances: create a business financial plan that includes income and expense projections, balance sheet as well as an income statement. Cash flow projections combine all three to show cash surpluses and shortfalls. Using this information allows management to make informed strategic and tactical decisions.
  • Human Resources: develop a plan for the recruiting, selection, and management of human resources. This means having the right people in the right seats, at the right time.
  • Marketing and Sales: every business must learn how to build a lead generation system. Qualified leads of prospects interested in your products and services.
  • Product Development: also referred to as research and development, any small business can identify new opportunities. Create a practical communication plan that will engage your new and long-time customers in a conversation designed to identify trends and opportunities.
  • Technology: technology today means more than just using computers and having a web site. Investigate and innovate to find new ways to apply existing technology to revitalize your business model.

Technorati Tags: time+management, marketing, sales, business+development

Site Search Tags: time+management, marketing, sales, business+development, management+failure


3 Responses to “Internal Deficiencies Can Kill a Business”

  1. 1 Lorelle VanFossen January 6, 2006 at 7:34 am

    Greg, I’m having trouble with this site. All of the posts, save one, are missing, and today is the day for my post highlighting your “Am I a Lazy Writer” post. Yikes!!!! I’m getting nothing but 404s.

    I’ll make a note in my post, but can you fix this? It was so wonderful and I just looked at it within the past couple days. pout pout pout.

  2. 2 remotecontrolceo January 6, 2006 at 8:54 am

    Lorelle: I moved all my content over to my main site. I had too many sites and blogs it was confusing for me and everyone, So I imported the content, the URL is now at:

    Sorry about that.

  3. 3 Lorelle VanFossen January 6, 2006 at 2:20 pm

    Thanks. I’ll change it.

Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: