#016 - Why do some businesses succeed when others fail

How to Raise Money Podcast

Welcome To The How To Raise Money Podcast. Ray and Nigel dive into the Top Ten Scale Up Mistakes business make and how to avoid them. Discover how to thrive, grow and scale in this episode of The How To Raise Money Podcast. Understand the different types of growth and how it affects your business, learn to pay strict attention to your finances and avoid taking on debt and expensive overheads which errode the business. Ray and Nigel discuss that many entrepreneurs will burn through their start up costs quickly and why you need to have reserve capital for unexpected bills or an increase in running costs. Find out why location both online and offline is key to your businesses success and how you too can utalise systems and processes to streamline your business, whilst placing a premium on customer service. Nigel talks about the need for an in-depth business plan with an emphasis on marketing and finance and how to use social media to supercharge your business by targeting niche audiences directly and sparking engagement. Finally Ray discusses the value of customers loyalty and why you should never underestimate the competition. Key Takeaways Top Ten Scale Up Mistakes Business Make Growing to fast - Whilst growth is desirable, over expansion can be a serious mistake. Don't be the first to market and take on added expense you must manage your investors expectations. Failing to track your finances - Don't take on too much debt, use resources and software to ensure you know what's going in and out of your business. Over spending - Ensure you know your capital expenditure Lack of reserve capital - Aim for three months worth of reserve cash at all times in your business Location - Identify the right location for your busy and consider functional adjacency Poor systems & processes - Streamline your businesses systems to be customer service driven and ensure you stay in control Business Plan - Have you got the right people in the right positions Failing to change with the times - be flexible and adaptable to fit market needs. You need to pivot your business to survive and thrive Ineffective marketing - target your audience and get them off line and onto your database Underestimating the competition - Please an emphasis on customer loyalty BEST MOMENTS In reality there are common mistakes that can kill businesses before they get off of the ground “Cashflow is vanity, profit is sanity” “Taking on debt erodes the business” “Look at the high street and see all of the casualties there - you need to change with the times” “It's incredible how focused and laser targeted your marketing can be” “Marketing is the biggest difference between your business succeeding and your business failing” “Customer loyalty doesn't just happen you have to earn it” “Those that succeed don't underestimate their competitions” “If you have a robust business follow these tips you will succeed and raise finance” VALUABLE RESOURCES Accounting Software - Xero and Quickbooks The Curve Card - simplifies your financial life by connecting all your accounts to one smart card with one even smarter mobile app. Nigel Best - Social Media for Property Professionals com The E-myth 'Why most businesses don't work and what to do about it' Michael E. Gerber co.uk ABOUT THE HOSTS Ray McLennan is a keynote public speaker and former corporate solicitor who has many years of experience owning and operating a variety of businesses in the UK and Ireland. Ray is the Regional Manager for Scotland & Ireland for Angels Den, which has over 13,500 high net worth Angel investors that help to find funding for property and SME businesses. Ray also helped to create Property Angels Den (PAD) in Sept 2014, which matches High Net Worth Investors with property proposals of all sizes. PAD now meets regularly and has funded dozens of property projects all over the UK. Nigel trained as an accountant but has for the