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Talking Technology By Steve Burns, Capital News contributor Why is it that you see some companies flourishing in an industry while others can only eek out an existence? What differentiates the successful companies from the ones on the verge of bankruptcy? How is one company able to weather adversity while another crumbles? While I would like to think that the leadership of the company is the answer, I also think that there are common business indecisions—where the company just fails to recognize that there is an issue and, therefore, takes no action. In this article we will look more closely at three common fatal business indecisions that, if ignored by the entrepreneur, can strike the fatal blow to a company's existence. Here are my top three business indecisions to avoid: 1. Everything is fine The everything-is-fine mentality is rampant throughout the Okanagan. This is the mentality that everything is working in your business so there is nothing to really improve. Customers are happy, employees are staying with you, and profitability is stable so there is nothing more to do. Really? But wait a minute—are you sure that your business doesn't need improving? Are you confident that you can consistently beat your competitors by sitting on your laurels and doing nothing to innovate? Research after research study indicates that the more fine a company thinks they are the more quicksand they are really sinking in. The best way to combat “fine disease” is to commit yourself to continuously improving your company. Without such a commitment, even the best companies in the Okanagan can be left in the dust by an upstart competitor. There is nothing like the brutal feedback of customers, suppliers and investors to create a sense of urgency to combat “fine disease”. 2. Profitability is nice and steady When profitability is nice and steady, entrepreneurs can become complacent and buy into the thought that additional profit improvement opportunities do not exist. Nothing could be further from the truth. It is profitability improvement that can help to improve cash flow and fund innovation in your company. Or, better yet, profitability increases can help you obtain additional skill sets that your company lacks or provide a better incentive structure for your team members. If profitability improvement isn't a commitment, you can bet that staying steady simply won't happen. Avoid buying into the nice and steady profitability myth—if your profits are not improving constantly, be vigilant in seeking out new profit improvement opportunities. 3. Pursuing anything for money In the early days of a business, most entrepreneurs try to follow their plan but “cash flow reality” sets in and gets in the way of sticking to what you are good at. To obtain cash flow, they take on work that they really don't believe is their core business. What results is a business that does many things but nothing really well. Essentially, through indecision, the business starts to take on anything for money. It really wasn't a conscious decision but rather one that just happened. By not making the decision to return to your core business strengths, you are diluting your precious human resources by wasting time on tasks and projects that are not producing the highest yield—both in terms of dollar value and employee satisfaction. By sticking to your core strengths, you can stop doing anything for money. So, is business indecision wreaking havoc in your company? Do you really know? Commit yourself to asking your employees, customers and suppliers about what decisions you are not making that could substantially improve your business. You likely will be surprised. Take action today to combat business indecision and you will not only be building a better business today but you will have tonnes of fun doing it. Steve Burns, CA, CMC, CFP, is the president and CEO of Burns Innovation Group Inc. and Steve Burns Inc. Chartered Accountant. You can reach him at 763-4716 or via e-mail at: |
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