Why do some business fail and why do some succeed? Success and failure are more connected than you may think because as we pursue success, we are also avoiding failure, and when we fail, we are eluding success. The normal advice is for businesses to always focus on the positive but doing this forgets one important thing. It means you’re not making yourself aware of the common pitfalls that businesses fall into, and that could be fatal. So what are these common pitfalls?
No strategic plan
Most businesses have some sort of vision, an idea of where they want to be in one/two/ten years time but so many don’t have a strategic plan to back it up to help them actually get there. It’s crucial that businesses should know their market, know their strengths, weaknesses, their competitors strengths and weaknesses and have a clearly defined and quantifiable process and plan to ensure they get where they need to be.
Making recruitment mistakes
Recruitment is an expensive business which is why companies shouldn’t cut corners and try to do it on the cheap. Businesses are built upon the people in them which is why companies shouldn’t just hire the first acceptable applicant but really delve deep into the recruitment process to ensure that they get the very best candidate for the role. Businesses need to ‘sell’ their roles to get the very best candidates and pay good salaries and offer excellent working conditions. Anything less and they risk second class candidates and they become second class employees.
Failure to deal with criticism
One of the biggest failures businesses make is to operate a ‘yes’ culture. When ideas are mooted by senior management, it is expected that they are met with 100% positivity and all employees get behind them. However, this is a very risky way of doing things. Good ideas are only good ideas once they been rigorously questioned and if a business leader simply expects their managers and staff to blindly follow every decision they risk damaging their business. Instead business leaders should expect and welcome critical questioning of their ideas when initially mooted. Then, the idea can be improved and that’s the point where employees should be expected to fully get behind the idea.
Not trusting employees to their job correctly and having a culture of micromanagement is a real business killer and one that can quickly see a once happy organisation become one that is fractious and full of mistrust and grievances. It’s important that employees feel trusted to do their job and this is the foundation of a happy company. Constant micromanagement will see a rise in employee turnover and a skills exodus.