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Why 99% of Business Owners are Leaving Money on the Table

2 0 22
22.09.2021

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What if I told you 99% of all business owners are leaving significant wealth on the table or are at risk of seeing their wealth disappearing due to key mistakes and missed opportunities? Research indicates it's an unfortunate truth. Even more troubling is that this was the reality even before the COVID pandemic magnified many glaring issues that lead to these struggles.

The good news is there are solutions to dramatically improve your chances of being in the successful 1%.

While unexpected events can cause unique problems for businesses, here are three key challenges impacting business owners every day:

Let’s examine each of these challenges in turn and see what business owners can do to try to beat the odds and overcome them.

When we find a business that is not easy or fun to run, it may be overly dependent on the owner. This often results in a business that lacks a solid foundation for predictable profits and cash flow. Below are a couple consistent issues we see while working with owners at this stage.

The most common issue is a lack of key systems and processes allowing the business to run smoothly, make the work repeatable, and make it easier to onboard new staff.

Another major issue we often see is a lack of financial reporting. Many businesses have difficulty producing monthly or quarterly balance sheets, and/or income and cash flow statements. Without key financial information, it's difficult to consistently make good decisions on how to best utilize resources of the company.

Quite often, these same businesses that lack operation effectiveness run into legal and liability risks. This could be as simple as not having an updated operating agreement or buy sell agreement in place, or a larger concern, ongoing lawsuits and litigation due to a lack of or poor procedures.

All of these issues raise the risk to your private business and can lead to lower valuations.

Businesses that have a solid foundation for predictable profits and cash flow may still not be growing at a pace that assists in working toward aspirational goals. What's missing?

Businesses that consistently fail to grow may not have a strategic plan in place. Often the vision/mission/purpose and........

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