TODD BANKS

Executive director, public relations, SherwoodParkChamberofCommerce

Statistics from industry Canada state that

current survival rates for small and medium- sized businesses decline overtime. About 85% of businesses that enter the marketplace survive one full year ,70% survive for two years and only 51% survive five years. Many reports on business failures cite poor management as the No .1 reason for failure. New business owners frequently lack relevant business and management expertise in areas such as finance, purchasing, selling, production, and hiring and managing employees.

One leading cause of failure is over expansion, which often happens when business owners con fuse success with how fast they can expand their business. A focus on slow and steady growth is optimum. But at the same time, you do not want to re press growth. Once you have an established solid customer base and good cash flow, let your success help you set the right measured pace. If expansion is warranted after careful review, research and analysis, identify what and who you need to add in order for your business to grow. Then, with the right systems and people in place, you can focus on the growth of your business, not on doing everything in it yourself.

It is critical that all businesses have a business plan. Many small businesses fail because of fundamental shortcomings in their business planning. It must be realistic and based on accurate, current information and educated projections for the future. Components should include a description of the business, vision, goals and keys to success, workforce needs, a thorough competitive analysis, and a plan for marketing, advertising and promotional activities, budgeting and managing company growth. Financially, include a list of capital equipment and supplies, balance sheet, income statement and cash flow analysis, and sales and expense forecasts. In addition, most bankers request a business plan if you are seeking to secure addition capital for your company.

In Tan ya Riemann’ s case with Platy pi and the information that I have regarding the company’ s history and her strengths. I would suggest thats here address her business plan and, in consultation with her banker, accountant and lawyer, develop a plan to down size. This will allow her to stabilize her company, put a plan in place for any debt structuring if required and allow her to return to the activities she loves to do in her business, which is what initially made her successful.