Pitfalls to avoid in business

Be visionary not over ambitious

It is a good thing to have a solid vision but this should not lead to over ambition. Some entrepreneurs set out early to achieve set goals based on their vision but they derail due to over ambition. Over ambition sets in when an entrepreneur bites more than what he can chew. For instance, a business organisation that commences operations with bogus remuneration and flamboyant office without commensurate business patronage has a bleak future. Vision casting demands a long-term attainment and not immediate reality. A visionary business person will adopt practical steps to achieve his vision and not attempt to accomplish his long-term goals within a short time frame.

Mixing business with pleasure

I have seen some business owners, who cannot detach business from their personal lifestyle. I remember vividly an advertising agency’s CEO, who was always pursuing vanities in the name of pleasure. The lifestyle of a business person should not impact negatively on the business.

Involving family in running business

There is the need to separate family ties from business. It is not a misnomer to have members of the family working for an entrepreneur but there should be a proper role definition. Some business owners, due to sentiments, allow family influence to destroy their business concerns. Anyone who is designated to run the business should be competent and not because he is a family member. The best thing, however, is to reduce family involvement in business running to the barest minimum.

Taking proper decisions

Decision taking in business should be devoid of sentiments and emotion. For any business owner to gain a good leverage and succeed, he needs to take firm decisions. Such decisions should, however, be ones that will propel the business to greater heights. Making decisions for mundane purposes will not only hinder business growth, but it will also aid its untimely termination.

Business decisions have to be taken with due cognisance of the business environment, market trends and customer scenario analysis. Good decision skills are an essential part of business development and growth.

Procrastination

Procrastination is one element that definitely prevents growth in any business. Procrastination affects both little and major things. The effect is that while a business owner procrastinates, opportunities slip by. Anytime there is procrastination, a deficit rather than gain is being created for the business. Procrastination can gradually lead to the demise of a business when the deficit far outweighs the gains.

Inadequate skills

Every business owner needs to possess the requisite skills needed to drive growth for the business. When skills gaps are identified, the business owner should take concrete steps to address such. Inadequate skills hamper business growth and places embargo on the organisation’s wheel of progress. Once an area of weakness is identified, the business owner should develop a plan of action to deal with such.

Dependence on a faulty structure

The foundation of any business goes a long way in determining the success and future of such business. Most business owners do not install proper measures in place for business viability. The internal processes and systems should be ones to sustain the business model. A business structure is the pillar that sustains the organisation during the turbulent times.

Lack of planning and forecasting

When there is no planning in place, a business venture is bound to fail. There should be an adequate planning to meet the challenges of the business environment. Planning involves the entire gamut of the organisation’s operations. Planning integrates all other components within the organisation in order to achieve strategic goals and objectives. Forecasting on the other hand is the ability to adequately project into the future and determine the growth of the business.

Forecasting takes cognisance of the organisation’s operations and seeks to critically analyse the trends, challenges and opportunities. It is indeed a blueprint of where the company should be.

Taking customers for granted

Any organisation that ignores the customer is at the brink of collapse. Customers are indispensable to the overall growth of any organisation. A business owner should not think customers are not important. Poor customer service affects the company’s bottom line. Customers should continually be engaged in order to feel their pulse and also identify any gap in the company’s service delivery.

Less focus on productivity

I t is good to be engaged in business activities but this should translate into profitability. Some business owners pursue several things in the name of business that yields no productive returns. Every business owner should have a strong focus on a productive endeavour that will engender growth for the organisation.

Culled from Punch News.