5 Things Successful Business Owners DON’T Do
Call me contrary, but I thought that if I was going to do a list blog I’d do it from the other direction this time. We see lists everywhere saying “7 Things to Do to…” You know what I mean. So this is a ‘Don’t Do’ list. Check it out here to see what owners knocking it out of the park don’t do.
They Don’t Avoid the Books
Successful owners know that they can’t run from the books . They know that good businesses keep good books. They also understand that they can get mired in inefficient practices, pay too much for products or services, and make bad decisions if they don’t analyze their numbers. I call it ‘owning the books’ as well as owning the business.
Because bottom line? The business won’t last if you don’t put part of your business focus here. It’s not all unicorns, rainbows and happy customers…it’s also grinding out your weekly appointment with the numbers without fail. You don’t have to like it, but you do have to do it.
Last point on the books. Did you know that statistically you have a much lower chance at business success if you don’t actively manage your bookkeeping? That’s a true fact, sister. And that includes tracking your income and expenses, reconciling your accounts and running reports for analysis.
I gotta tell ya, I’ve started up three business knowing that there’s a high failure rate, and I sure as hell stack the deck in my favor by knowing how to understand business financials. It ain’t that hard…apply yourself. You’ve got this!
2. They Don’t Do Everything Themselves
I can always tell if an owner is going to be able to expand and grow based on how willing they are to trust other people to help with their vision. A business can only scale out when an owner can focus on the parts of the business they rock, usually sales, development and planning, while handing off other tasks to qualified workers. The problem that a lot of entrepreneurs have is that they have a really (really really) hard time letting go of any part of their business because they know how to do it best. Am I right? Yeah, you so know I am.
And then, once the owner gets help, they need to train, guide, and provide systems within which to work. They gotta let their staff fly free to get the work done, allowing flexibility in how they do the work as long as it gets done right. And mistakes will be made, but they can be turned into learning experiences instead of failures. Wouldn’t we all want that? This is exactly what frees up the owner to do bigger things!
A while back, I had a client who who was brilliant in his field and a visionary about how he wanted his business to grow. He made a push to expand, hiring a project manager and many more workers. The company was awarded several projects and was busy as a beehive. Everything looked great, but when I checked in with him a while later he told me it just wasn’t working out. “Why?” I asked. He said the project manager wasn’t doing the job right and he had to do everything himself. “Did you train him?” I asked, and he replied “No.” Did you ever tell him what your expectations were or have him shadow you to see how you do things?” “No, but he should already know how I want things done.”
He ended up finishing the projects, laying off the workers and scaling back. He couldn’t grow because he couldn’t hand off work. Don’t be like him!
3. They Don’t Leave it to Fate
Good owners do not put time, energy and money into opening a business only to let the chips fall where they may. They make short and long term plans. And they make a Plan B — then all the way through the alphabet if needed. And they don’t just set a goal, they break down what it will take to get them there. They put in systems, standards, and processes that help them through the steps. Patton had nothing on a good small business owner.
And if you don’t know what systems and standards are? They are only this — the damn glue that holds it all together. I don’t care how small you are, every business needs them. Real rough — it’s like this -if you have a product, write out how it is made, down to every part. Include quality standards and how long it should take.
If you have a service, write down what you offer, and everything each service or package includes. Plan out how each ‘thing’ is done, even as small as how you answer the phone or respond to emails and texts. Those are your standards. Then systems help you meet the standards. Systems can be written guidelines, instructions, or checklists. If you do this part you can hand off work as you grow. Your beliefs in writing, and you’ve shared how you want it done and how to do it. Cool, huh? Now you can scale out!
4. They Don’t Forget Their Customers
After the initial euphoria and gratitude for those first sales, a business settles into the grind of dealing with customers on a daily basis. And that’s when I see the ‘customer-as-adversary’ syndrome (I just made that up). It happens when the customer becomes a chore or taken for granted rather than a wonderful being who inspires gratitude.
I know what y’all are thinkin’… I mean, why wouldn’t a person want to buy your product or service… you’re the best, right? You don’t need no stinkin’ customer service! Or maybe it’s not that exactly, it’s just that you get tired of dealing with all your customer needs.
Sigh. I get it. But here’s the dealio — if you aren’t grateful for each one of your customers you will move your company backward. Your reviews will slide, you’ll lose new business as well as current customers through attrition and disappointment with you.
Good business owners know that customers are gold and they go above and beyond so that their customers know that. They thank them, reward them and create exclusivity to make them feel special.
5. They Don’t Run From Change
I’ve always loved that pithy saying ‘change or die’. It particularly applies to business. I mean, think about it…how many giant businesses do you know that have failed because they didn’t change with the times. Toys R’ Us, Borders, Tower Records, Sears, Pan Am…just to name a few. And how many more small businesses failed for the same reason? Too many to count.
I liken it to driving in the rear view mirror…you think that the present will continue the way it is to infinity and beyond…that your customers won’t change, the economy is stable, and you are immune to changing trends. So you create your future based on the past, lookin’ in that rear view mirror. And when a curve comes up? You still go straight, and… well…ya crash.
As an owner, you have to, have to, have to constantly be looking at what the economy is doing, looking at ways to innovate your products or spiff up your services, maybe give your business a face lift. Hey…can you find a new way to make your customers happy? Do it.
And spend time looking at trends, check what’s going on in your industry. Stay excited! Fight complacency, don’t be one of those owners with blinders on who can’t see when the business is in a rut. If you are, maybe it’s time to get out and do something fresh and challenging.
Summary: While the list had 5 business don’ts, it includes a whole bunch of business do’s. This is gold, peeps, because learning from this list will keep your business fresh, organized, your customers happy, and you out of financial trouble.