We've finally finished with our last client from 2015, here's some statistics on our journey:
104 clients total.
11 clients of Type A (Sole entrerpreneurs).
58 clients of Type B (2 Partners business).
18 clients of Type C (Companies with several partners).
17 clients we know no such details about.
- Group A businesses are all functional up to date.
Minimal "waste" expenses, minimal turnaround time compared to other businesses. In our opinion, the most actively growing businesses of all.
- Group B is 32.7% (19) non-functional. 42% (8) of which are <1 year old.
"Waste" varies.
- Group C is 22% (4) non-functional. All 4 are <1 year old.
Maximum "waste" expenses, maximum turnaround time. In our opinion, the most flawed businesses that would better start from scratch.
All our clients had a minimum of 1k USD to spend on our services, so wannabe entrepreneurs, who usually quit for all the obvious reasons, didn't make it to our list. Location is RU, 1k is "something" here.
Observation #1:
- Businesses consisting from several people in charge are the most difficult to run. Not a single example of efficient business from all small businesses we were introduced to. All had insane amounts of "waste". The most fatigued by their business people. Lowest % of net profit. Constant uncertainty in decision making, smallest % of right decisions. We called this "Environment of Decline".
Observation #2:
- Majority of partnerships were initially formed due to unwilingness to hire specialists.
Observation #3:
- Successful, efficient and growing businesses with more than one person in charge had no contracts and no redirects.
Conclusions:
1. The most efficient businesses are those where only one person is in charge.
2. It's usually better to hire a specialist than to have a partner, especially when one is replaceable by another.
3. It's better to make sure that your partner has no interest in stealing from you, not that he can't do this.
4. Want to hire wrong specialists for your business? Bring more people to make decisions.
5. Those who can't carry a business by themself - won't succeed in a group. What could be an effort in sole entrepreneurship will become pure expenses of all kinds in partnerships.
6. Partnership is less likely to come up with a project that will survive Year One, compared to sole entrepreneurship, when it comes to small business.
7. Make sure that you realize it as quick as possible if your business in on its course to become an "Enviroment of Decline", otherwise you'll blink an eye and you're already there for years.
Do you guys observe the same tendency?
For those who are sole entrepreneurs - what kinds of problems have you ran into, which you consider the major ones?
For those who are in partnerships - how have you made your business more efficient? In which circumstances you would quit the business for sure?
104 clients total.
11 clients of Type A (Sole entrerpreneurs).
58 clients of Type B (2 Partners business).
18 clients of Type C (Companies with several partners).
17 clients we know no such details about.
- Group A businesses are all functional up to date.
Minimal "waste" expenses, minimal turnaround time compared to other businesses. In our opinion, the most actively growing businesses of all.
- Group B is 32.7% (19) non-functional. 42% (8) of which are <1 year old.
"Waste" varies.
- Group C is 22% (4) non-functional. All 4 are <1 year old.
Maximum "waste" expenses, maximum turnaround time. In our opinion, the most flawed businesses that would better start from scratch.
All our clients had a minimum of 1k USD to spend on our services, so wannabe entrepreneurs, who usually quit for all the obvious reasons, didn't make it to our list. Location is RU, 1k is "something" here.
Observation #1:
- Businesses consisting from several people in charge are the most difficult to run. Not a single example of efficient business from all small businesses we were introduced to. All had insane amounts of "waste". The most fatigued by their business people. Lowest % of net profit. Constant uncertainty in decision making, smallest % of right decisions. We called this "Environment of Decline".
Observation #2:
- Majority of partnerships were initially formed due to unwilingness to hire specialists.
Observation #3:
- Successful, efficient and growing businesses with more than one person in charge had no contracts and no redirects.
Conclusions:
1. The most efficient businesses are those where only one person is in charge.
2. It's usually better to hire a specialist than to have a partner, especially when one is replaceable by another.
3. It's better to make sure that your partner has no interest in stealing from you, not that he can't do this.
4. Want to hire wrong specialists for your business? Bring more people to make decisions.
5. Those who can't carry a business by themself - won't succeed in a group. What could be an effort in sole entrepreneurship will become pure expenses of all kinds in partnerships.
6. Partnership is less likely to come up with a project that will survive Year One, compared to sole entrepreneurship, when it comes to small business.
7. Make sure that you realize it as quick as possible if your business in on its course to become an "Enviroment of Decline", otherwise you'll blink an eye and you're already there for years.
Do you guys observe the same tendency?
For those who are sole entrepreneurs - what kinds of problems have you ran into, which you consider the major ones?
For those who are in partnerships - how have you made your business more efficient? In which circumstances you would quit the business for sure?
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