On the verge of any business failure, most of the owners pin up ‘working capital’ or ‘further investment’. Of course, some owners reason out market influences such as competition or taxes. Normally the business does not fail until certain poor decisions in management make it fail.
How many business owners are ready to accept their failure of poor leadership, lack of experience, wrong decisions, or dissatisfied customers?
Most SMB (Small and Medium Business) units get a nose dive because they ignore simple points simply. Narrowing down those points would land in ‘people management’ and ‘relationship’. The financial failures start at the surface level and that may lead to an ungovernable situation. The further pretence of knowledge eliminates moral and ethical considerations from management planning. Finally, a pessimistic vision could permeate operational flaws easily.
In many cases of business planning, we neglect to focus on corrective flaws in productive outcomes and better turnaround plans. This may amplify in situations and perceive to be extraordinary and without a stepwise process.
What is important is an understanding of the basic problem and orientation of management towards action around it. How many small businesses are considering these practical factors during business planning?
Irrational thoughts and actions demonstrate the ‘unstructured decision making’
REALIZE PEOPLE CARE
Do recognize that people join your business for their benefits. It is as simple as you look for profits from your own company. There are 5 expectations from employees. 1. Salary on-date 2. Statutory benefits without fail. 3. Compatible Workplace 4. Promotions and Growth Opportunity 5. Suitable Training. If they feel a pinch in one of these, all your abstract motivation may not work. They would be searching for another place to get these advantages.
One of the major weaknesses in small and medium businesses is to have few employees close to the owner. They might have won the hearts of the owner by trust, loyalty, commitment or what not! They would be identified as powerful persons in the company because of the influential relationship with the boss. This might cast away certain good people in the company and indirectly, the business will lose good employees. Also, at a point in time or maybe over years, such close employees will become vulnerable and cannot be handled like every other employee. Business owners will have challenges to deal with such ‘heroes’.
Employees love company stories and they use them as vantages for their safety. Let the stories remain in their levels. Be a boss and do not disclose your business battles like financial-hurdles or business scrambles in real-time situations with individual employees. At certain points of time, they may come close to your heart. Yet, stand away from deep discussions.