Owning and operating a small business or being a manager or leader in a business is tough.  Anyone who disputes that reality just does not fully understand what it takes to successfully function in today’s business world.  It is demanding, disappointing, and costly; yet, it can be rewarding, exciting and economically viable for those who realize the ups and downs that are part of the business environment.

Despite understanding the pros and cons of business, there are 3 consistent mistakes that business owners, managers or leaders often make which cause their operations to underperform. Realizing these mistakes and making the necessary corrections should enable any business owner, manager or leader to gain a larger positive return for their enterprise.

Mistake #1:  Lack of an effective business plan 

As the timeless analogy proclaims, “People do not plan to fail, they fail to plan.” A business plan reflects the thoughts, aspirations, actions and goals that the business person intends to set into play to achieve success for his or her business operations.  It is not a document that is constructed to meet an initial requirement or reflect a “wish list”; and, it is not a document that you simply change the date and use it year after year.  It is a “living” document that reflects current business mission, vision, objectives, strategies and action plans.  If properly developed and utilized, the effective business plan will enable the plan developer to more successfully achieve greater results with less stress and uncertainty than those who have no plan or simply attempt to operate by “showing up” everyday. Without a parachute, skydivers face a certain death. Without an effective business plan, businesses sooner or later will face the same demise.  

Mistake #2:  Inadequate staffing and development. 

In virtually every business, the single highest expense area centers on people.  Keeping those costs under control demands great effort and constant attention. More often than not business owners, managers and leaders have to reach a point of critical demise before they address staffing needs. While intentions are perhaps initially good, too often negative outcomes occur when a business operation attempts to function understaffed.  Customers, current employees and their stress levels or ability to adequately perform, product sales and overall service suffers as a result of this action.  That penny saved will not necessarily be a wise penny earned.  

Part of this issue is traceable to the lack of on-going recruitment which should be a constant for any viable business or department, whether or not positions are readily open.  Having a pool of potential candidates available to interview when position vacancies occur keeps the owner, manager and executive in the forefront on business stability.  Further, having a “lunch and learn” process of development or training will only add to further frustration.  Every business should have a formalized process of developing people not only entering their employment but also while employed.  Whether it is dealing with administrative needs, customer service, sales or simply answering the telephone, continually developing people will only add to the expertise of the business. Well trained and professional people cause a business to become a preferred provider. Customers recognize this due to the expertise and the consistency of operations. Having adequate staff and having that staff properly developed will allow the business to perform with a “super bowl” mindset not an “empty bowl” mindset.

Mistake #3:  Failure to ask for recommendations. 

It is always puzzling why so many business operations regularly fail to ask current customers to provide them with names of other potential customers; or, to provide the business with a recommendation of service in general. When businesses perform their responsibilities in such a manner that it provides value to current customers and those customers are happy, they will be open to provide a credible affirmation of that fact IF asked. The challenge comes with business principals simply not asking or being so passive in their approach that the business negates the importance of the recommendation in the customer’s mind.

People want to associate with winners. Someone does not walk into a business and proclaim that because the business appears to be failing, they want to be a part of that experience. People are proud of business associations where success is evident.  They feel confident and assured that their best interests will be addressed and that the product or service they are receiving is “top-of—the-line” in that particular business sector. Businesses must allow customers to help them by being seriously clear in their asking reasoning and then proceeding to request names to contact or to gather a key recommendation that is available for potential customers to view.  Nothing builds success or ignites growth like the recommendations from current customers.  When people know you care, they care for you too.

As has been said, “Running a business is 95% people and 5% economics.” Whether you are a business owner, manager, or a leader in your organization, being able to overcome these 3 mistakes will help you soar to new heights. Put your knowledge to work beginning today.