The Seven Deadly Business Sins
The Seven Deadly Business Sins
You may recognize some of these sins in others. If they make you feel uncomfortable, good. Take action now to correct the problems standing in the way of your success.
7. Not using your professional team
You’ve got an accountant, a lawyer, a banker, an insurance agent, and probably a financial planner. They are a resource that you can choose to use or ignore. These are knowledgeable professionals whose expertise is invaluable, if you use it wisely. When I hired my lawyer, I told him I expected him to keep me out of trouble, not defend me after I got into trouble. Make them members of your team. Keep them informed and get feedback before you make any major decision or commitment.
6. Lack of Systems and Procedures
If you were in an accident and unconscious for three days could your business run without you? Do you have an operations manual? Even if you can be at your business every day, would you hire a fox to guard the henhouse? Of course you wouldn’t. You’d even keep an eye on your trusted dog. So why would you let a single employee control all your deposits, write all your checks, or provide pricing to customers without a second pair of eyes checking the transactions? As President Reagan said, “Trust, but verify.” Put procedures in place to protect your business.
5. Failing to plan
Some businesses succeed by accident and some people win the lottery but most who consistently succeed in business do so because they develop a good plan and then follow that plan. Sure things change, but if you don’t know where you want to go it really doesn’t matter which road you take. Failing to plan is planning to fail! So, plan the work and then work the plan.
4. Ignoring your customers
Have you told your customers lately that you love them? Unless you are the only business in town, your competition is trying to convince your customers to become theirs. Research has shown that for the majority of consumers the intangibles like customer service, quality and convenience are more important than price. If your business is like many service businesses, you probably get 80% of your revenue from 20% of your customers. Invest 80% of your attention in your best customers.
3. Doing, not leading
Many people spend too much time working “in” their business instead of working “on” their business. Leaders determine the goals and the direction of the company. Managers implement that plan and employees do the work. You are responsible for setting the tone, not doing the work. Get the train moving and then control the speed. Don’t shovel the coal. Ask yourself, “What is the highest and best use of my time?” Focus on the important things in business and life.
2. Not collecting receivables
I had a client once who said, “Billing is one procedure, Payment is another.” He believed in one but not the other. The majority of businesses that fail do so for lack of cash flow, not debt burden. Make sure your customers understand and agree to the price and terms and then follow up with them before payment is due to prevent problems. Recognize and reward prompt payment.
1. Making your business the most important thing in your life
Okay, I admit that this will probably not result in the failure of your business. As a coach I have to ask you to think about it, though. Why are you in business? What’s the purpose? What’s your goal? If I asked your friends and family what’s important in your life, what would they say?
Committing these sins won’t guarantee your failure, and renouncing them won’t guarantee your success. But, as a business owner, wouldn’t you prefer to invest your time and money in something that is more likely to pay off? Business owners who embrace good practices are much more likely to achieve their goals, experience less stress, and enjoy a more rewarding personal life.
The Seven Deadly Business Sins - To learn more about this author, visit Dave Ferguson's Website.
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During my years in the corporate world and as a coach I’ve found seven practices that can adversely affect any business. It’s my Top Seven Business Sins list. These sins are not the mortal sins spoken of in religious doctrine. They won’t condemn you to an eternity of torment. They can, however, be fatal. Fatal to your business, that is. Many business owners believe that they won’t get punished unless they get caught. But, if you commit these sins, by the time you realize you’re being punished it’s much too late to claim ignorance.
You may recognize some of these sins in others. If they make you feel uncomfortable, good. Take action now to correct the problems standing in the way of your success.
7. Not using your professional team
You’ve got an accountant, a lawyer, a banker, an insurance agent, and probably a financial planner. They are a resource that you can choose to use or ignore. These are knowledgeable professionals whose expertise is invaluable, if you use it wisely. When I hired my lawyer, I told him I expected him to keep me out of trouble, not defend me after I got into trouble. Make them members of your team. Keep them informed and get feedback before you make any major decision or commitment.
6. Lack of Systems and Procedures
If you were in an accident and unconscious for three days could your business run without you? Do you have an operations manual? Even if you can be at your business every day, would you hire a fox to guard the henhouse? Of course you wouldn’t. You’d even keep an eye on your trusted dog. So why would you let a single employee control all your deposits, write all your checks, or provide pricing to customers without a second pair of eyes checking the transactions? As President Reagan said, “Trust, but verify.” Put procedures in place to protect your business.
5. Failing to plan
Some businesses succeed by accident and some people win the lottery but most who consistently succeed in business do so because they develop a good plan and then follow that plan. Sure things change, but if you don’t know where you want to go it really doesn’t matter which road you take. Failing to plan is planning to fail! So, plan the work and then work the plan.
4. Ignoring your customers
Have you told your customers lately that you love them? Unless you are the only business in town, your competition is trying to convince your customers to become theirs. Research has shown that for the majority of consumers the intangibles like customer service, quality and convenience are more important than price. If your business is like many service businesses, you probably get 80% of your revenue from 20% of your customers. Invest 80% of your attention in your best customers.
3. Doing, not leading
Many people spend too much time working “in” their business instead of working “on” their business. Leaders determine the goals and the direction of the company. Managers implement that plan and employees do the work. You are responsible for setting the tone, not doing the work. Get the train moving and then control the speed. Don’t shovel the coal. Ask yourself, “What is the highest and best use of my time?” Focus on the important things in business and life.
2. Not collecting receivables
I had a client once who said, “Billing is one procedure, Payment is another.” He believed in one but not the other. The majority of businesses that fail do so for lack of cash flow, not debt burden. Make sure your customers understand and agree to the price and terms and then follow up with them before payment is due to prevent problems. Recognize and reward prompt payment.
1. Making your business the most important thing in your life
Okay, I admit that this will probably not result in the failure of your business. As a coach I have to ask you to think about it, though. Why are you in business? What’s the purpose? What’s your goal? If I asked your friends and family what’s important in your life, what would they say?
Committing these sins won’t guarantee your failure, and renouncing them won’t guarantee your success. But, as a business owner, wouldn’t you prefer to invest your time and money in something that is more likely to pay off? Business owners who embrace good practices are much more likely to achieve their goals, experience less stress, and enjoy a more rewarding personal life.
The Seven Deadly Business Sins - To learn more about this author, visit Dave Ferguson's Website.
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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