Healthy Business

Healthy Signs Of A Business

Posted on July 13, 2016 · Posted in Blog

It is no secret that the failure rate is highest in a business’ earlier years. In the United States small businesses have a high failure rate of 50% in the first five years. The 50% is not necessarily accurate of the word of failure. If one probes closer they will see that 33% of businesses failed because of financing issues or were forced to shut down through legal action. Nearly 17% were closed voluntarily.

“Not all businesses that closed are unsuccessful or deemed failures. The 17% that closed is evidence. Often owners who close voluntarily did so via executing or planning an exit strategy, closed a business without debt, sold a viable business, or retired from the workforce (Ryan Jorden). “

In order to avoid failure as a small business owner, monitoring business health is a best practice. Having a dedicated team, concrete business plan, secured financing, and growth are four core areas to monitor health of a business.

A dedicated team will bring solid work ethic to a business. Hard-working team members contribute to ensuring quality products and services. Mentioned in a previous article, developing a positive work culture will create an atmosphere where teams can do their best work. Happy team members translate to healthy business.

Business plans outline the goals and mission of the business. Team members have to unite and share the values and believe in them. Monitoring how precise a team can follow a business plan is evident of a business’ health and performance.

A business’ positive or negative growth is proof of activity. If a business’ growth is negative there is a likely chance that a team, business plan, or financing are not properly aligned. Measuring growth can give insight to how healthy a business is.

References:

1 – https://www.linkedin.com/pulse/20140915223641-170128193-what-are-the-real-small-business-survival-rates

2 – http://www.businessknowhow.com/startup/business-failure.htm

3 – FreeDigitalPhotos.net (Image)