Are all your eggs in one basket?
read moreDo successful businesses take big risks to succeed?
No. They research thoroughly before taking decisive action, although they do sometimes make mistakes. Successful businesses are risk averse.
What's a business strategy? It sounds complex.
A good strategy is never complex. It should simply explain how you will differ from your competition through performing different activities, or similar activities in different ways. Your strategy should help you side-step your competition and avoid looking the same through copying their best practices. It should be clearly and regularly communicated so employees are aligned to it.
An example of a beautifully simple strategy is this from the USA's largest airline, Southwest Airlines:
“Meet customers’ short haul air travel needs at fares competitive with the cost of car travel.”
Should I get an investor to invest in my business to help fund further growth?
Most likely not. Once you take outside investors' funding you must focus on satisfying them. This can be to the detriment of your customers and the company. As soon as you take outside investor money you have effectively decided to sell, because that is the only way investors can get their money out. As I heard one business person say, it is like strapping a time bomb to you your back.
It is often much better to seek alternative opportunities. A business coach can help find them.
What stops or hinders business growth?
Growth-stunting factors I frequently see include:
- a lack of direction and focus
- no strategy at all
- owners working far too much "in" the business, and not "on" it
- not having the right experts around to help when needed
- team members not engaged with the company vision or direction
- trying to be everything to everybody, therefore not excelling in anything
- not clearly understanding the target market
- fear of success, which leads to self-sabotage
- fear of failure, which leads to inaction.
What are some of the attributes of successful companies?
- Very clear short- and long-term business directions
- Very clear strategies and action plans
- Thorough understanding of business fundamentals
- The ability to take action
- Laser-like focus on achieving important actions within 90 days, to meet goals within strategic plans.
Should a business have a business plan?
All businesses need plans, not just 12 month ones, but long-term ones. However, I believe traditional business plans are too long, with too much to focus on. They become uninspiring and land in the bottom drawer collecting dust. This wastes time and energy, and leaves the business without real direction.
A strategic plan is much more effective. Styles vary, but they all focus only on what is important, with a clear, simple direction. It's easy for businesses to refer to them to check they're putting energy into the right areas.
Should I focus on what my competitors are doing?
Absolutely not. If you do, you're not focusing on what's important in your own business. When people or companies watch the competition a lot, I ask them: do you have a clear direction and business strategy? Without them you get distracted by others, rather than building your own success.
