We all know someone who has a business that struggles to reach that next level. Maybe it’s your business. Many times this kind of struggle is simply due to the entrepreneur’s own mistakes-- mistakes that are completely avoidable.
Then there are those entrepreneurs who fall completely flat, and fail miserably. Why?
There are 9 potentially lethal reasons listed here. Avoid these mistakes and you will NOT be one of those entrepreneurs who land at the bottom of the heap and out of business.
No Clarity of Vision: Every business owner must have a firm understanding as to why his or her business exists. Otherwise, how can the business communicate effectively to its customers, its team, vendor and joint venture partners, etc.? As an entrepreneur, you must create a mission statement that truly reflects the what and why of your business. Your mission says why you do what you do. Also, you must never subordinate your mission in order to get money.
No Core Values for Company and/or Employees: Your business’ core values dictate how you conduct business on a daily basis. And just like your mission, you must never subordinate your core values in order to get money.
No Organizational Chart: Your organizational chart not only adds the necessary structures and efficiencies to your company, but it also clarifies who an employee should seek out in order to solve a problem or to present an idea. A well-thought out organizational is a must-have for any successful business with more than one employee.
No Job Descriptions: If you have employees, your employees should have job descriptions. It is that simple. If you are looking for help and need to hire someone, you need to know what it is you want them to do. Think about it logically. Before beginning your search, write a job description—write down everything you think you want your new employee to do. Make a list what responsibilities this new employee would take on. Then, next to each responsibility, write down the necessary skill. Be specific.
No Sellable Idea: So you are a go-getter and you have a great idea that you really know a lot about (and you love it!). But, you need to slow down and think: Is this idea sellable—will people want/need/love it? Just because you love it, does not automatically qualify it as a good, sellable idea. Conduct a simple online keyword research. If you find at least 10,000 look-ups a month, then by all means, proceed!
No Pay for Themselves: Sadly, many entrepreneurs don’t factor in their own income when working out their business’ financials and business plans. Many stand by the attitude that they can just take whatever is left at the end of each month. This is not a recipe for success.
No Understanding of Your Daily "Keep the Doors Open Number:" Do you know how much money it takes to keep your business up and running each day? Believe it or not, many entrepreneurs do not. Many really have no idea of what it really costs to run their business. Obviously, this is a huge problem. If this is you, get out a pencil right now and write dow
EVERY fixed cost you have, including paying yourself. Add up all the costs. Then, divide that number by 365. There it is: Your business’ “Keep the Doors Open Number” aka, the amount of money you need to bring in each day in order to keep your doors open.
Underestimating Value of Sharing: Check this out—You are struggling to get your business past that 3 million dollar level. But there is someone (or a couple of people) out there who can take your business to that next level you are looking for. This person or people can come in and take you from 3 million up to 6 million in the first year. Wouldn’t it make sense to share up to 50%, if need be? It is really a numbers game. Whatever you do, do not let your ego prevent you from getting your business to the next level.
Avoiding Confrontation: Don’t worry so much about being liked. This can lead to the demise of good entrepreneurs. Do you find it hard to be proactive when it comes to uncomfortable situations in your business? If there is a problem, confront it. Even better, if you spot a potential problem, jump on it before it becomes a problem. Not addressing problems, letting them simmer (and potentially grow bigger) will lead to bad deals, bad employees and bad morale. Stop and think about it—there is always a way to handle even the most uncomfortable issue.
If you think you can see yourself in even one of these scenarios, stop right now and get someone to help you work through it. Stop making these basic yet potentially lethal mistakes and you will see your bottom-line climb higher. You will also have happier employees and, you’ll see, more people will want to do business with you.
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