4 Ways to Avoid Common Pitfalls of Business Ownership
Business ownership can be stressful. You are working day and night to set your business up to thrive and want to make sure that you are taking all of the right steps. As a business owner, there are several common pitfalls that you should be aware of and try to avoid.
Here are four ways to avoid these common pitfalls:
1. Create a solid strategic plan focused on execution.
A well-constructed strategic plan can help you avoid many pitfalls. It will clarify the culture you are building and outline well defined goals to accomplish your vision. With a focus on execution, your strategic plan should leverage 90 day rhythms with identified objectives and key results. This work provides you a roadmap to achieving success in Quarterly Sprints and allows you to execute at a high level. This is more than a document. It is a living document guiding the business to your preferred future.
Here are a few key elements you need to make sure to include in your strategic plan:
● Core Values: Discovering core values is critical to developing the company culture you desire. Our 4-Step Process: 1) Determine the Values (Words) 2) Define the Word in Your Context 3) Develop a Question to Evaluate if the Value is operating in your culture 4) Discover Stories that can be told to demonstrate this Value is operating in your business. (This is also a great marketing tool)
● Clear Focus: An intentional strategic plan will keep the company’s purpose or mission out in the forefront. We call this the Clear Focus because it should be so clear that anyone in the business can proclaim it. We use the word focus because when distractions come, you can use this to snap your team back into focus.
● 3-5 Year Target: Your Strategic plan should provide clear targets for the next 3-5 years. If we don’t know what we are aiming for, we will miss it every time. Let’s get clear on what your team should be aiming for.
● Marketing Message: We want the entire company clear on who our ideal client is and exactly what we are selling them. We also want to be clear about what sets our company apart from competitors.
● Long-Term Objectives: We return to the 3-5 year time period and begin to build real objectives and initiatives that need to take place to reach our targets and vision.
● Annual Objectives: We define what needs to be addressed in the 12 months to get us to our 3-5 year targets and objects.
● Quarterly Priorities and Key Results: The real secret sauce to strategic planning is focusing on running the business 90 days at a time. We break down the objectives into key results that become the priorities for execution throughout the quarter.
● Obstacles and Opportunities: an effective strategic plan purposely captures obstacles and opportunities. This will allow your team to intentionally address them in real time and make decisions as they impact your Objectives.
2. Manage your finances carefully
Managing your finances is critical to the success of your business. Keep track of your expenses, revenue, and cash flow, and be mindful of your budget. Don't overspend or overextend yourself, and be sure to save for unexpected expenses and emergencies. Consider enlisting the help of an accountant to help manage your finances. Investment in your business is not a one-time event for long term success. Your ability to invest in core operational resources are what will separate you from your competitors.
3. Build a strong team
Surround yourself with a talented and committed team. Hire people who are skilled, motivated, and share your vision for the business. Foster a positive and collaborative work environment, and invest in your team's professional development. A team that feels invested in and valued will provide you with loyalty and hard work.
4. Stay adaptable and flexible
The business world is constantly changing, and you need to be able to adapt and pivot when necessary. Be open to new ideas and ways of doing things, and be willing to take calculated risks. Stay up to date with industry trends and changes, and be prepared to adjust your strategy accordingly. The key to being a great business owner and setting yourself up for success is the ability to accommodate change and move forward.
By following these tips, you can avoid common pitfalls and increase your chances of success as a business owner.
Build your business with growth in mind. By utilizing a business strategist, you can set up your business to thrive based on their expertise. Our team at Thrive Business Operations is here to set you and your business on a growth trajectory.
