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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.
Next time we will look into Mistake #2.
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