The difference between success and failure lie clearly in the decisions an entrepreneur makes and how those create new paths to follow. Statistics vary, but a common belief now is that 70% of new employers survive past two years and 51% actually last five years (According to SBA ). In retrospect, these numbers are exceptionally better than what was previously thought. There are various reasons for such staggering numbers, and many experts will give various reasons for failure, but the reality is that it all comes down to what decisions a person is willing to make. Sometimes despite all the proper planning, management, passion and other variables a person could unintentionally destroy his/her business even before it launches or within the growth period. The following list explains five decisions that waste time, effort, and money and are poor examples of decisions a business owner can make.
1) Thinking everything needs to be understood before doing anything: Procrastination comes in many forms, but in business its a killer. "To think too long about a thing often becomes its undoing" as phrased by Eva Young is a reality when an entrepreneur over analyzes, over researches, or second guesses a decision to move forward. Any growth requires learning, trial and error, and the need to enhance the knowledge of things previously known. There is no way a business owner could be an expert in everything that is needed for that business, or else the business would already be in maturity. Truthfully, when a concept must be learned, it must be mastered, but its better to continue building and discover what needs to be learned along the way than to halt the movement and stop the growth entirely because a concept is not know yet. This is why the consulting industry exists. It may be better to hire an expert rather than waiting to be one first.
2) Getting Creative or not following the System: As Michael Gerber succinctly wrote in the E-myth Revisited; a majority of entrepreneurs start as technicians who find themselves in the role of business owner without the knowledge or skills to successfully run a business. Franchises have an order of operation, multilevel marketing companies have manuals to follow for success, and a good business owner should have a mentor. Creativity is great in marketing, or in solving a problem for a customer, but when it comes to building, growing, and daily operation. Follow the guidelines of those people who have been there before you. This will make things work easier ten-fold.
3) You're in the wrong market: This one seems a little too easy. The reality is though that most business plans do not correctly identify a specific niche that will drive business. If you find yourself in the position of Shelly from Glengary Glen Ross and think your leads are weak, then either you are not a good enough salesman, or maybe you need new leads from the proper market that will buy from your business. Find who wants what you got and not the ones who don't.
4) Spending time studying products: A financial services manager once told his entire staff to stop learning about how an annuity worked, or how many different variables there are in the new unit investment trust and just get out and find people to buy them. His point was not to have his staff be unable to explain the products to a client, but rather to just find clients in the first place. This same thing holds true for any industry. A retail shop owner doesn't need to know how every product works in the store, and the owner of a pizza restaurant will not memorize every ingredient on every food item in the place. A few specialists in these areas are great to have as staff or employees, but the business owner should not be worried about this stuff. The focus is on building and growing, not the intricate details. Its better to say "I don't know the answer but will find out" than to try and learn it from the get go and not be seeking the customer.
5) Miss Big Events Sales drive any business, and sales people need to be motivated. While every person is motivated by different things, the opportunity to hear successful speakers, or motivational instructors should not be missed. Big events can also be opportunities to network, or develop strong relationships with partners and clients. A game of golf, sporting event, or dinner meeting is a great example to build rapport and sure way to increase your portfolio.
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