We see it all the time…a new story, new statistic, or new addition to the piles of small business failures.
What if I told you most, if not all, business failures are preventable?
The three things necessary to proactively guard against failure are a clear purpose and strategy, great people unleashed for execution, and systems that can scale.
Most businesses and business owners have not really articulated what they’re doing, why, and how. Yes, almost everyone has a Mission Statement and a Vision Statement, and many more even have some type of strategic plan. But these are usually filled with platitudes and “business speak” as opposed to capturing in clear detail the true goal of the business or the business owners. Instead of writing what we think others want to read, write the true Mission, Vision, and strategies to get there for the business.
Most businesses have great teams of people capable of doing tremendous work. And most business owners and leaders are holding them back by not empowering them with the trust and decision autonomy to execute their tremendous skill sets to achieve the Mission and Vision. If the first step is getting the Mission and Vision clear, the second step is communicating that to the team, defining the parameters within which they are to operate, empowering them with the authority and autonomy to work on those goals, and getting out of their way while they do. The wise business leader “feeds the beast” while allowing the team to execute the daily operations.
Most businesses have some form of systems, operating procedures, and other production or service processes. Very few are documented, and even fewer are used for onboarding, training, and team development. What are the key ways of operating your business that should not change or be compromised? This goes beyond values statements. This is about the key, unique, and never-changing ways you operate daily. If those are not clear, not documented, not communicated, and not built in a way that supports the desired Vision for growth and success, it’s unlikely the business will ever get there.
Three simple keys to business success. In almost every case of business failure, one or more of these were missing. And even in cases of illegal and fraudulent activity, they’re still missing (poor team selection, unclear systems and procedures, etc.).
So many failures are preventable, and if you look closely, these keys to success can be extrapolated to many more areas than just business.
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