Seven (7) mistakes every business must avoid...
Did your business come with an instruction manual that has ALL THE SECRETS to making money and hiring great people, while providing answers to the hundreds of other challenges? These illusive manuals are RARE INDEED, so you should be commended for the long hours and sacrificing parts of your life, while navigating through stressful obstacles to build your business.
The challenge becomes “What’s next?”. Your markets, customers and competitors are constantly evolving. To remain healthy and sustainable, your business must clearly see its opportunities, invest in its people and create strong processes. As a business owner, avoiding common mistakes is critical. In many instances, knowing what “not to do” can be more important than knowing what “to do”.
SEVEN (7) MISTAKES TO AVOID AS A BUSINESS OWNER
1. Technology or Digital Neglect
The advancement of technology benefits all companies but owners are stuck in the past with not wanting to take advantage of selling online or creating a digital presence. You miss opportunities and your competition catches up.
2. Underestimating the Competition
This is referred to as "Owners Syndrome", whereby a business owner starts to think their product or service is the best, therefore they pay no attention to the competition. Many times it is not the product or service that the competition beats you with, it’s the great customer service or the TLC they give. A large percentage of consumers switch to a new company due to the service the competition provided. Unfortunately, it is often the case your company could have done something that would have retained the business.
3. Relying on One Big Account
Relying on one customer leaves the company at the mercy of this client. If the client leaves or does not follow through on paying or follow-up, your business suffers tremendously.
4. Everything to Everyone
Trying to provide products or services that are close to what you do but are outside your wheelhouse. You end up spending way too much time on products and services outside your core expertise when your business cannot afford to do so.
5. Relying on Yourself Only
Believing that if you want something done right, you have to do it yourself. The business can only grow as fast as one man's efforts due to the inability to let go of the reins. If you cannot let go, then you leave your people with no responsibilities or accountability.
6. Rapid Growth and Over Expansion
Rolling out a product or service that takes off but you are not ready to fulfill the orders or service obligations. Alternatively, planning a big roll out and building an infrastructure to carry it but then the business does not come in as predicted, thus using most of your cash flow. Both of these scenarios affect the long term health of your business.
7. Putting Up with Bad Employees or Management
When a business grows or is not growing, owners rely on individuals that cannot fulfill the needs of the company but are left in their roles. The continued inability to manage the business hurts in the long run. You need to identify these individuals and take immediate and effective action.
Maintaining perspective as a business owner is a delicate balance. There are many demands on your time, attention and resources. Don't ever hesitate to reach out for helpful opinions and advice from your key employees and/or your trusted advisors. While "Business Instruction Manuals" certainly appear to be illusive, there are significant resources and knowledgeable people out there to help.
Originally published by Victor J. Bierman III here.
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