I am not a lover of lists. I think if you need a list to prioritize, that is fine – but writing lists strikes me as a busy activity designed to allow you to avoid actually doing something. But that is just me.
As a nod to those who find value in lists, I have examined the most common ways people screw up their businesses, and written THE LIST of the most common. If you do or are any of these, your business is failing – you just don’t know it yet!
So here we go….in no particular order… 10 things you can do to screw up your business!
Run away from the crazy.
Owning a small business, or even a larger one, will invariably subject you to a fair amount of crazy. Families are dysfunctional, friends can be insane and employees just don’t understand what is expected from them. When money and emotions are involved, there is no limit to the amount of crazy you will see. Deal with it, expect it, resolve it and move on. If you hide from it, ignore it, or run away from it – it will fester, grow, and ultimately tear your business apart from the inside. It will rot everything that is good, and elevate everything that is bad. You must accept the crazy, embrace it, work with it and move on.
Be a jerk.
Jerks come in all shapes and sizes, and can even be camouflaged behind a smiling face, but if you are a jerk, your business is dying. Do not be a jerk to your employees, your partners, your family – and never be a jerk to your customers. Convert the jerk in you to be a good listener, a problem solver, and an advocate for your employees – protect your team, mentor them, help them grow – don’t be a jerk!
Treat your employees as tools.
Your employees are people, not tools. They are the most important asset your business has – even more important than your customers. If you treat your employees as the most important PEOPLE in your business, they will look after your customers as if they are the most important people. Treat your people as tools, and not only are you a “tool” but your business will die fast.
Believe you know it all.
We’ve all been there – we built the business from the ground up, had to learn everything along the way, and now we absolutely know everything about the business. We know who the customers are, how to reach them, and how to sell. After all, we have been doing it since forever, right? Yep – but if you want to really succeed, you need to know what you don’t know. You need to find the people that are experts in what you don’t know. For great success you need the right people in the right place at the right time. I call this “filling your gaps” – and if you don’t think you have any? You are lying to yourself, and your business will fail.
Be the toughest mother on planet earth.
You may believe that leadership is about being tough. You may believe that vulnerability equals weakness. You would be wrong. Leadership is about vulnerability – it is about being you, warts and all, and overcoming adversity, challenging your own beliefs, facing fear…and being vulnerable. This does not mean you cry like a baby when things go wrong, it means that you are real, and that you can acknowledge the hard work and efforts of those around you. Your team will follow you when you are real. Otherwise, you may just become the jerk in 2. Above!
If your business does not have a “story” make one up.
Most people buy because of an emotional response, and justify the purchase through logical reasoning. Therefore having a story is important. Buyers like to know who is behind the product, why the product was created, what the history is etc etc . Of course, not all “stories” are the same and for some the temptation to create a story is great. And in doing so, authenticity is lost. And it is the authenticity of a product or service that connects with the emotional receptors of the buyer. Lose authenticity, lose customers. Made up stories will not connect, they are not authentic, and your customers will simply see you as a liar. That is a shortcut to failure.
Hide behind slimy half-truths, and mealy-mouthed statements.
This is true when dealing with customers, employees, partners, service providers and anybody else you or your business connects with. Actions and language designed to manipulate, misinform, or simply evade questions will ultimately lead to distrust, employee unease, customer doubt and product devaluation. Don’t do it. Always be transparent, honest, and straight-forward in all your dealings. Failure awaits the other course.
Leave it to someone else to do.
Follow-through is one of the easiest paths to success, and one of the most ignored. If you fail to follow-through with what is needed to be done, you will get nowhere. If you leave it up to someone else, without specific instructions, authority and accountability, it will not get done. I know…you are the ideas guy, you are not good at the execution, right? Well, here’s a truth you won’t like…execution is a choice, not a skill. If you don’t execute on your ideas, if you leave it up to someone else, take a step back…and choose to do it…and then do it. Failure to execute is the same as failure.
Ignore the numbers.
9 out of 10 business owners have no idea what the numbers are…let alone understand what they mean. You need to know your cash balance always, your debt, your margins by product, your cash flow needs, your receivables and payables ageing, your revenue by product, your overheads…and you MUST know them well. It is not good enough to get your numbers once a year at tax time…that is too late to fix any problems. A business that ignores the numbers, ignores reality, and makes decisions based on what? Supposition? Guesses? If a business owner does not understand his numbers, he will be broke before he knows he was in trouble.
- Whine about everything.
Nobody loves a whiner. You know the type: “the product is too expensive”, “the sales are too low”, “the rent is too high”, “the employees don’t work hard enough” ….or they may say, “if only I had more time….or more dollars…or better employees” Yep, whiners….it is much easier to whine than to solve problems.
Whiners lose…problem solvers win. It is time for you to stop whining and start winning…or your whining will lead to failure.
So, there you have it….10 ways to screw up your business. I hope you are not doing any of these, but if you see yourself here, there is an antidote…just stop!