Small businesses fail for many reasons too numerous to list here, but there are also some common denominators in many of those failures. The very qualities that spell success can also become liabilities in certain circumstances. Knowing when you need the expertise of others, understanding when your passion threatens to steer you into unwise choices and keeping relationship building at the core of your strategy can all help you keep your business afloat through numerous challenges.
Have the Right People Around You
Few people who start small businesses are good at everything. This does not have to be detrimental, in fact, if you are particularly passionate and talented in your industry, that laser focus can be the key to success. But you do need to fill in the gaps. That means talking to attorneys when legal issues crop up, having a bookkeeper or accountant for your financials and hiring good managers if your people skills need some work. As a founder, you may also want to consider partnering with someone who can shore up any weaknesses you have. Hiring the right people also means listening to them when they tell you what you need. In fleet management, GPS fleet tracking software and solutions can be critical for managers who need to know where their drivers are and how they are performing with integrated routing and dispatch. Compliance, safety and cost-effective behaviors can all be monitored.
Know What’s Happening in Your Company
You can’t be a master of everything, but hiring people who have the know-how you need doesn’t mean not taking responsibility for staying on top of things. This is true with every aspect but particularly when it comes to your money. You need to have a solid understanding of your profits and expenses and know what is coming in and going out on a regular basis, even if you have an entire accounting department. Failing to attend to the details and leaving them up to others who may not be as passionate as you are about your company can be disastrous.
Be Conservative with Growth
The startup landscape is littered with companies powered by big ideas and not enough in the way of capital, knowledge or other resources. Patience is a virtue, especially in the early days. Wait to seek funding until you are truly ready. Hold off on expanding until you have the demand, the money and the staff to accommodate growth. Don’t stagnate by any means, but temper your enthusiasm with realism. Think in terms of long-range growth.
Network
Networking will be important throughout your working life. Mentors can help you decide when it’s time to take the next big step forward with growth as well as advising you on other issues. Relationship building with other business owners, your customers and your staff is key. As an entrepreneur, you might be tempted to embrace a rugged go alone strategy. This tendency is helpful when it gives you the courage to stand out from the crowd, make hard choices and pursue genuinely creative solutions, but it can’t be the whole of how you operate. It’s true that business is about making money, but it’s also about relationships.
