Plugging the holes in a struggling small business - it's not about the money!

The Money Show interviews Anton Ressel, Strategic Head for SME Support at small business development agency Fetola.

Most small business owners will say what they need most to get their enterprise going, is money.

But the reality is that even a lot of money or investment can't fix a flawed business model, cautions SME expert Anton Ressel.

He's the Strategic Head for SME Support at small business development agency Fetola.

Working with entrepreneurs, Ressel likes to use the analogy of a bucket full of holes.

"Unless you fix the holes, the bucket will never fill up, irrespective of how much water you pour into it in the form of time and money."

"Focus on fixing the leaks!"

Anton Ressel, Strategic Head for SME Support - Fetola

The way to plug these holes in a business is seldom through money, Ressel emphasizes.

You need to focus on the fundamentals - unless you fix the foundations of your business you can 'throw as much money at a problem as you like and you actually aren't going to win'.

Ressel identifies the three main 'holes' you need to patch in an ailing business.

1. Know where you're going

It's a bit of a cliché, but really also like a north star for entrepreneurs if they know what they are trying to achieve. For instance: These are my goals, this is my plan for the end of the year, by next year I want to be in a different position. Having that kind of vision and insight is a really powerful way of plugging a hole, firstly.

2. Build replicable systems

Systems are really the building blocks of growth, and without good systems no business can scale. They are basically, 'this is how we do things around here'. You don't want systems that are reliant on you or on individuals for their success, so they must be replicable. This allows you to step out and focus on other things in the business and allow people beneath you to take over certain fundamentals.

3. Understand financial management

Understand your cash flow needs, and don't become a victim of your own success. 

"We so often see when a business lands that amazing contract or wins that tender or manages to get into that big retailer that they've been chasing, and it actually ends up being the demise of the business. "

"That's because they haven't managed the money and the cash flow of their business correctly."

Anton Ressel, Strategic Head for SME Support - Fetola

Ressel also covers related elements like HR, marketing, sales, and branding - scroll up to listen to his pointers