Problem Based Learning

Image: Hmmm, that initial business idea sounded good but it's not proving as easy as it first appeared! Copyright: Hexal

The Problem: Setting up a business and securing long term business survival - can it be planned?

You wake up one morning ready to face another day of grind. You work all day for someone else to take the benefits. Why?

You have an idea - it's been filtering through your brain for many months now, but being brave enough to do something about it is another matter. Perhaps now the time is right. The market is there, the idea is there... You just need some time and planning to get it up and running. At last, you will be free to pursue your own life, to be in control and to reap the rewards of your hard work.

Many people go through this scenario before finally taking the plunge and setting up their own business. That the task is hard work is not in dispute, but many business people are prepared to do the work to make the business a success. Working hard, though, is not enough. Sometimes you have to work 'smarter' rather than 'harder'.

Those initial pangs of optimism and excitement can soon be replaced by anxiety and problems as the realities of running a business start to kick in.

The Insolvency Helpline has identified a number of factors that can be looked at to predict the possibility of business failure. These include failings of the management - bossy managers who do not listen, laziness and poor communication - expanding too quickly, poor planning, ignoring problems and weak credit management being just some of these factors.

What can businesses do to help predict and plan ahead for the problems that arise? Is there anything they can do and to what extent is sound business planning the key to avoiding financial meltdown and eventual insolvency?

Or is it the case that the thicker the business plan, the less relevant it will be?