The Cash Cow Syndrome

Whenever I search the web or browse the business section of the bookstore I’m amazed by the number of resources available for startups. The wealth of information available for entrepreneurial hopefuls is staggering. What’s equally amazing, however, is the lack of resources available for existing businesses. It seems that entrepreneurs who have successfully navigated beyond startup must make a purposeful effort to find useful resources to help them focus and plan strategically for continued growth.

Why is this?

1. Could it be that authors and publishers don’t find business leaders who are experiencing some growth as interested in planning strategically as startup industrialist?
2. Or, is it that existing business leaders aren’t as hungry for knowledge as they were during startup?

If you look at the statistics, both answers are correct.

• A report by the SBA cited on Entreprenurer.com reported that 66% of small businesses with employees survive two years after startup, yet only 39.5% of them survive six years after startup.
• Dunn & Bradstreet reported that 90% of business failures can be traced to poor management from lack of knowledge.

All too often, business owners find themselves with a “cash cow” business that moves along in spite of itself.  However, without appropriate management, even a cash cow will suffer from complacency, unanticipated market changes or ineffective management. Entrepreneurs can never stop actively managing their business. Active management requires careful planning, continuing education and helpful outside resources. By remaining diligent, teachable and open, business owners can turn their slow moving cash cow into the next model for business success.  

 

 What do you think, we want to hear from you?