I can’t work out what I am doing wrong

Dear Aunty B,

I have just experienced my third year of making a loss, which is very disappointing. I have a great product that I am passionate about, that suppliers love, staff love but I just can’t get enough customers to make the thing work.

We have just had a strategy meeting of the senior leadership team and although we have come up with a few ideas, I don’t think it is going to make the fundamental changes we are looking for.

I am personally sick of struggle town and doubt I have the energy for another year of low cashflow and increasingly impatient shareholders.

Any ideas?

Lee,
Redfern

Dear Lee,

I fear you are making the mistake made by many passionate entrepreneurs: you are seeking confirmation of actions rather than the truth that you need to hear.

You are in business to create customers, not passionate products and the facts before you tell the story. Not enough customers are buying enough of your products at the price that makes you a profit and brings a return to shareholders. You need to go back to square one and redo your value proposition.

Don’t worry. I am sure this will not mean a complete revamp of your business, but maybe some new ideas, tweaking of existing products, better marketing, a more simplistic approach to sales and so on.

You do need to bring in outside brains that are not going to share your passionate view for what you do, but deliver some cold, hard advice about your business. And make sure your senior management team is also involved, as you will want to dismiss any ideas that don’t fit your passion.

Good luck!
Your Aunty B

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