Have you ever wondered why some businesses fail and others succeed even if they provide the same product or service? Spending the last few years coaching business owners worldwide, I was surprised to discover some simple signs that lead to trouble. Here’s a list of bad practices every small business owner should avoid.
1. Slave to the Time Bandits — If you’re always putting out fires, shooting from the hip, being reactive instead of proactive…you’re wasting money and energy! Stop getting hijacked and put an end to interruptions. Create a time management plan and stick to it.
2. Stagnation — Running a company into the ground doesn’t take long. Stagnation is a bad sign that things are about to shift towards either growth or death. Act quickly! Evolve to the next level by researching the competition and then look for ways to reinvent your brand, product, or service. Evolve or die!
3. Poor planning or vision — Watch for cyclical and seasonal trends and safeguard against negative internal and external events. Focus on the company’s mission or have a consultant conduct a gap analysis to help see what’s missing between where you are and where you want to be. Clearly defined organizational processes are the special sauce of any well-run company.
4. No sales or marketing process — If you aren’t sending the right message to the right distribution channels — you are losing money. You can’t be everything to everybody. Narrow your niche, create a brand (not bland) personality, and focus on attracting the ideal client within the right target market.
5. Bad customer service — Losing touch with your customers is a death sentence. Social Media has made it easy for disgruntled clients to bad-mouth you. Reach out to a dozen or so of your customers for a little Q & A time. Ask tough questions about how your company can improve things and take action….fast!
6. Mediocre advisers — Are you eating with buzzards instead of flying with eagles? Don’t scrimp when hiring a good attorney, banker, or accountant. Surround yourself with experts in their fields and play at what you have to work at. Form a mastermind group of people from other industries who can provide unbiased opinions and support.
7. Absentee owner — You’ve stuck a “gone fishing” sign on your office door and left others in charge. That’s fine and necessary, but if you are often unavailable, you are asking for trouble. Don’t think you can slack off after putting the right people in the right seats. You still have to drive the bus.
8. Wearing too many hats — Entrepreneurs may feel it’s easier to do everything themselves. Do you have to do it all? Or are you just afraid of letting go of control? Focus at least 80% of your time on what you do best which should be generating revenue. Eliminate your time on minutia by delegating, automating, or bartering services to others.
9. Budget? What budget? — Spending foolishly can dig a hole so quick that you’ll be lucky if you can see your way out. Do you need that upscale office space if your customers don’t visit? Do you need to drive that expensive car? Make a gut check, drop the ego, and stop the bloodletting.
10. Mindset issues — If business owners struggle with issues (such as fear of success or failure, low self-esteem, and poor decision-making), the business will ultimately suffer. Get unstuck, hire a coach to help stay on track, set goals, and be accountable. Work on yourself as well as the business.
(BTW — As CEO/Founder of a successful business for over 20 years, I had to learn these lessons the hard way. After selling my business, I became passionate about helping other business owners take the right steps toward living a stress-free, balanced, and rewarding life by keeping their employees engaged, dealing with conflict, and developing the right culture through leadership).
