Why small businesses fail and what to do about it

The 3 things you need to know to keep your business afloat

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One of the first books I read when I started my journey to online-biz-dom was “The E-Myth Revisited” by Michael Gerber.

[Not all the books I’ve read have been a hit, but I’ve had a 100% success rate with books that have been recommended to me, like this one.]

It’s a bit dated but still sound.

In the book, he asks the question “Why do most businesses fail in their first year?”

To answer that, he spoke about a concept which can lead to a major breakthrough in your business. It really stood out for me & it is the idea of buckets.

Each business is made up of three buckets.

Bucket #1: The Technician’s Bucket

Most solo-preneurs pay way too much attention to this one. We love working on what we’re good at, and since it’s our work that brings the bacon, why wouldn’t we spend ALL our time here? But that’s the trap that prevents us from thinking about the future and directly leads to our businesses checking out in 12 months.

Bucket #2: The Manager’s Bucket

That’s where we look at the bigger picture & consider how one task plays out as a thread in the overall tapestry of our business. How do we determine our priorities and measure how one piece of work will affect our outcomes? In this bucket, we improve our efficiency and our effectiveness.

Bucket #3: The Strategic Bucket

Here, we add the CE to our O. Being in this bucket means looking at our business from an even higher-level view and seeing how we want it to grow and change in the long term. Ever been in an interview and annoyed by the “where will you be in 5 years” question? You’ll have to start asking yourself that same question about your business, sooner rather than later. Here you’ll think about things like, what products can you bring on stream, what partnerships and alliances can help you to reach your 5-year goals and how will your company change to meet your customers’ changing needs.

The book goes on to help you create tactical plans to handle the 3 buckets. I’ll let you grab the book and unearth the rest.

It’s a must-read and I’ve even loaned out my copy to my best friend. In fact, it’s so good, it’s been years and I still haven’t gotten it back yet…

Talk soon.

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