7 Reasons Small Businesses never become Emerging Growth Companies
Perspective from an Executive Business Coach
Being an entrepreneur or small business owner is one of the [YOU FILL IN THE BLANK] experiences in my life.
A friend of mine that has owned and operated 3 businesses gave me the following words and comments to fill in the blank
She continued by offering the following insights,
“Business owners share in the one common emotion which keeps them in business. It’s the freethinking, control your own destiny, thrill of making their own music play instead of having the song decided kind of thing.
[BUT] Some business owners forget the biggest emotion, the one which spawned their success and they themselves fall victim to letting their music be decided, which brings on the frustrating, nerve racking, angry and mean thoughts you hear as a business coach.”
All I can say is BRAVO! That’s it!
You have to continue making your own music! So with that as a backdrop I offer up what I have found to be 7 Reasons Small Businesses Fail to Become Emerging Growth Companies.
- Thinking Small – Failure to think beyond today is to risk your entire business. Many businesses have the potential to grow because they are providing a valuable product or service. But, if your vision as an entrepreneur stops with making a living you have missed out and society has missed out on what you have to offer.
- Becoming satisfied and complacent – Why Settle for Local Championships when God wants you to be Champion of the World? I heard this quote in a sermon and thought that it was a very powerful message. This sense of complacency is very common in businesses of all sizes. You have achieved some level of success and financial comfort, and feel like you have arrived! But nothing is guaranteed except this moment in time. Focus on improving what you do everyday.
- Inadequate Financial Management – You need quality and timely financial information (historical and projected) than allows you to make the best decisions. You need to understand what the information is telling you about company performance. Make the investment in getting information timely (weekly, monthly) and in understanding what the information tells you about your business.
- Processes and procedures never institutionalized – Managers rationalize why they have not created a clear and specific set of policies, processes and procedures that are followed by everyone. But, no one can show me a company they admire that does not deliver on their product or service in a very consistent way. Get with it! Figure this out! It makes all the difference in the world in becoming an emerging growth company.
- Lack of Skill Development at all Levels of the Organization- Nothing remains the same. The status quo is a myth. People are finding new ways to do everything. Keep everyone abreast of the best approaches to doing their job.
- Failed to Incentivize the Behavior you want – When you align the incentives (pay, praise, promotion) with the type of performance that you are seeking you have significantly increased the chances that you will receive the level of performance you need.
- Recognize that you may be a Limitation to your Success – You are the “chief” employee. What do you do well and what do you need help with? Ask and answer this question. And then build a team around your capabilities that will ensure that the business can grow to meet its potential.
The success and health of the US economy is contingent upon small companies finding the right formula of risk-taking and quality management to grow our economy and employment base. Strive to be great.