A friend asked me to sit down with him and his partner to analyze their business. With so many people starting businesses the current podcast looks at how their experience might help others avoid several common mistakes.
My friend invested in the business based on knowing the person running it and his personal track record of managing a department in a large company. Watching how these two partners interacted and the assumptions they brought to the relationship caused me to develop this list that I hope will help any new business owner take a step back and look at how they work as they develop their business.
You can do anything but not everything
I see business owner profiles that list a million skills thinking this adds to their competence when really what it means is you are all over the place. True, you may be able to do all those things but what is the most important skill you bring to the business? Being clear in your own mind what is most important for your business helps you develop focus for yourself and the business.
You have to decide what business you are in
Mission creep can occur in any business and happens before you realize it. You start with one idea, see others doing something and decide to incorporate that into your business as well. Before you know it you are running several different lines some of which no one wants. Every owner has to admit that some of the areas they have ventured into were simply “me too” and not driving the goal of profitability. It may mean a fire sale but fire is a cleansing element that allows you to move on to the things that really matter.
Activity is not purpose
There is a tendency to see any activity as productive and that is not the case. Some smaller activities can and should be outsourced (kids or friends are great for this). Your focus needs to be on what helps the bottom line. We fool ourselves that we are busy but busy is not always productive. Develop a “brain trust” of people you can go to and ask questions regarding things they are doing. And, rather than “me too” ask yourself if SOME parts would work for you.
Desire does not mean skill
If you have a partner, lean on their skills if you can. The perfect person to do what you need may be standing right next to you but has not been asked. Sometimes we get so invested in doing it ourselves that we fail to assess if we are doing it well. The other person may not be able to do it all but can do enough to get you on track or model for you what needs to be done so you have a clearer idea of how to perform the task better.
Make the numbers your friend
The numbers should tell you the areas that are working right now and those should be the areas of focus to keep the doors open and the bills paid until you are able to branch out. Running a business means making hard choices. That might mean you have to do a few things you don’t like to support the things you do.
I hope my list was helpful because ego can get so involved in running a business that we can’t see the forest for the trees or allow ourselves to ask for help. Understanding these points is one means of allowing you to see beyond what you have imagined and what actually exists.
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