There’s good news, and there’s bad news. Good news: 98% of all businesses are small. This is good news for our entrepreneurial spirit, which has made us a great nation. Over 60% of new companies will fail within their first five years.
After building my companies and consulting growing businesses for years, I’ve realized that many business owners don’t have an objective view of their business, which leads to its demise.
The ego of a businessman can prevent him from being objective when deciding what his business needs to be successful. Management is too busy running the company to take a step back and look at it objectively. They are too close to their problems to notice them.
They are proud as parents because they spent sweat, time, and effort creating their “baby” and refuse to accept that it could be anything less than perfect.
This is what I call the “business parents trap.” It’s the attitude that “Hey, I’m sure it’s great because I came up with it.” This is the trap in which business owners fall when they create and launch products that will not be tested in the market.
I have found that there are usually two things wrong in a business. The product (the baby) and the management.
How do you evaluate your business? Do your employees have the right to say that you are heading in the wrong direction? It’s unlikely. Sometimes, a consultant is brought in to evaluate the performance of the company in a certain area. When management brings in a consultant to review the company’s performance, they are often looking for affirmation, not constructive criticism. Some consultants will “affirm” for a fee.
Someone needs to tell your business or yourself if you have bad breath (corporate). Here are some honest thoughts that may help you and your business.
- It would be best if you got over yourself. You must first learn to love yourself. You are not the most intelligent person on the planet. No one cares about how well you know the business.
- Spectator sport: You should not make others watch you talk. There’s a big difference between listening to someone and simply waiting your turn. Let them use their brains. You hired them and maybe a consultant because you thought they were smart. Ask questions and pay attention to the answers.
- Another product? Even though you may think your product or service to be the best thing since flip-top beer cans, the world will only see it as one more product. They must still be convinced. Although you created the product and know all its functions, customers don’t buy features; they buy benefits. You must demonstrate how your product will benefit your customers, whether it’s a high-tech service like the internet or furniture for the office. Your products are only as good as their functionality. Benefits are what makes them so popular.
- Paperweight: You may have high-tech skills for creating a product but lack the marketing and sales skills. Small business owners often think marketing and sales is the easiest part of their company, and it’s almost an afterthought. It is because of successful marketing that better ones outsell inferior products. Imagine your marketing plan is a complete story that will sell your product. If your book is a bestseller, your product will also be a bestseller. Your wonderful product will be a paperweight destined for the landfill if you don’t have a story that can drive sales and distribution.
- Take a step back: Your competitors are not all idiots. What’s this? You may be surprised to learn that they think their babies are adorable, too. They might even tell stories better than you do, making them appear more attractive. Try to see yourself and your child through the eyes of a disinterested person.
You have a greater than 50-50 chance of not being in business five years from now. You must put your ego to one side and accept that you cannot control everything. The secret of success is not knowing everything but learning what you do not know and finding people who know.