Business growth. Luck or skill?

Fast growth SME's are not the norm.  Quite the opposite, per the FT, two thirds of starts up have gone under by year 7.  So what do the fast growth SME's have that the others don't is it luck or skill?

Luck does play its part.  Sometimes being in the right place at the right time can make a huge difference.  I've seen some of SME's biggest clients come from unlikely situations.  The odds of it happening were small, but possible.  I've also seen strong management teams being caught up in external factors just outside their control.  Even the best team can't prepare for the infinite eventualities the world can through up at it.  Sometimes it is just plain bad luck that strikes us all.

So luck plays its part for a growing business, but over the years I've become more and more convinced skill is underplayed.  What do I mean by that? I mean there is an enormous amount that the majority of SME's can do to improve their odds of growing and becoming more successful.  What this entails I'll be covering over future posts this year.

 

Comments

[Stefan Lialias]

Excellent topic and I look forward to your considerations. Discussions to what that elusive formula for success continues especially during these times when people are looking beyond employment in larger enterprises. In my position I have had the fortune to meet many entrepreneurs over the years both successful and those who had unfortunately failed – many more than once. I have come to believe the core elements that exist in those that prevail is a perseverance and a high tolerance for discomfort/pain.

[Tim Tav]

Both good posts. It may also be that these people know how to leverage their time to maximum effect. I spoke to one entrepreneur who had been trying to do everything himself. Outsourcing to staff or contractors freed his time for busines growth and strategy. I myself have just engaged a Quickbooks Specialist for my accountancy software training as I was trying to do it all myself. Next is the Website!!