Pitfalls That Every Business Owner Must Watch For: Tips For Avoiding The Frustrations Of Ownership
When you own your own company you are solely responsible for every aspect of the business, and over time this can lead to a lot of frustration. There will be times that the company does not grow as fast as you want it to, but this is to be expected in every industry and every business. If you do not have the right tools and right attitude, you will find these frustrations to be more than you can handle, and you will see all of your hard work go to waste. There are several things a business owner can do to make sure that they do not have the same frustrations over and over, which will make your company easier to run and more profitable in the long run.
Understand The Cycle Of Business
One of the first things that you need to understand is the cycle that every business experiences, since this will help you to realize that what your company is experiencing is not unique, and there are things that you can do to make the situation better. Every company begins with a vision, and the honeymoon period the first couple of months that you are working for yourself are some of the best that you will have for a while. After that, your business will start to become a nightmare, as it takes up more and more of your time and nothing will seem to go your way. This is a hard step, but once you get through it, you will see the company as it really is, and you will understand the reality of your situation. As the company continues to grow, you will reach a point where it seems like you are barely hanging on, struggling to balance staffing needs and sales, inventory and invoices. Once you have this period under control, and you have your breakthrough, you can start to enjoy the fruits of your labor and step back from the company some so that it can run itself. Do you know what part of this cycle you are in? If you do not, then you need to spend some time evaluating your situation.
Profit calculations are fairly easy: take the money that you have coming in and subtract the expenses, and whatever is left over is the profit or loss. You can raise profits either by raising sales or reducing expenses, and reducing expenses is one of the hardest calls that you will have to make. Often this will mean cutting back on your workforce or reducing the hours that employees work, but this is essential for the long term health of the company. Another way to lower expenses is to make your employees more productive through the use of technology like CRM, which will help to manage your customer relationships and reduce the amount of time that employees spend on paperwork. There are few frustrations in business that cannot be helped by improving your bottom line.
Learn To Delegate
Finally, one of the biggest frustrations that you will ever face as a business owner is not having enough time to enjoy what you have created. You spend so much time working with the business that your personal and family life is put on hold, and that creates tension and frustration in your life. Once your business is on a good trajectory and you feel comfortable with the pace of growth, it is time to start delegating some responsibilities. Find a manager that you can trust to handle the day-to-day operations so that you can spend more time on strategic thinking. Empower subordinates to make simple decisions without constant input from you. You will still have to oversee the company and check in to make sure that things are running smoothly, but if the company is to be successful, you need to learn to step back.
Running a business is complicated and rewarding, but it can become frustrating very quickly if you do not manage your resources properly. By taking care of the resources that you have, you will see more growth, even as you spend less time working on the daily operations.
I am Hunter Laird and I wrote this article to talk about some of the strategies that I use to manage my company. After attending an eFreedom seminar I had a lot of good ideas to help make my business stronger, and these are some that I found worked for me and I have seen tremendous growth as a result.