5 Deadly Decisions in Business and How to Avoid Them By: J. Glenn Ebersole, Jr., Chief Executive of J. G. Ebersole Associates and The Renaissance Group™
Think about this for a moment - Thousands and thousands of business decisions are made every day. Many of those business decisions can be and are deadly! And think how very difficult it is to avoid making some of those deadly decisions. Here are five examples of some of the most common deadly business decisions.
Deadly decision #1: One large customer or client Your business receives more that 50% of its gross revenues from just one client or customer.
How to avoid: Set a policy that no single client or customer will represent more than 10 to 15% of your cash flow. Diversify your client base to help your company prosper in the long term.
Deadly decision #2: No Market Research You create and launch a new product or service without adequate market research and testing first.
How to avoid: Do your market research and testing “up front” before anything else whenever you launch a new product or service.
Deadly decision #3: Insufficient capital Your business is significantly undercapitalized.
How to avoid: Use conservative projections and be sure to have as much capital as needed to get you through a sales cycle or another planned funding source.
Deadly decision #4: No strategic focus for the company Your business has no strategic plan and therefore no strategic focus. You pursue every opportunity for business instead of focusing your efforts in a strategic manner.
How to avoid: Engage in strategic thinking and planning. Develop a strategic plan and implement a strategic action plan.
Deadly decision #5: Create a business with equal partners Your business has equal partners (50/50; 33.33/33.33/33.33; 25/25/25/25, or some other split). This is almost a guarantee that there is a business disaster waiting to happen. Every one is in charge, so no one is in charge. No one has a final say. Decisions are made by consensus.
How to avoid: Someone must be in charge. Put someone in charge so they have the largest ownership share.
How may of these deadly decisions have you or your company made? And how many of these deadly decisions are you or your company contemplating at this time? Please contact Glenn Ebersole at jgecoach@aol.com today to find out more about how to avoid making deadly business decisions.
5 Deadly Decisions in Business and How to Avoid Them - To learn more about this author, visit Glenn Ebersole's Website.
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