Five Things That Make A Business Crash
Businesses, small and large, often follow trends in their downward spirals. Tried and true, there are several strong things a business can do to ensure its failure.
Here are the five things and how best to avoid them:
- No clear mission.
A business needs a mission statement to monitor the ebb and flow of opinion. Employers need a mission statement to be able to set goals, encourage productivity, keep integrity, and motivate. Employees need a mission statement to know what needs to be done, stay motivated, and to reach out to customers. Customers need a mission statement because they need to know the “man behind the curtain.” They need to see that the business has a face and a soul.
- Failing to set a budget.
Money is key to the continuance of a healthy business. If managers are not actively working towards limiting and strategically using the money they have, a business will inevitably sink and die. In an article for the small business section of Yahoo, Patricia Lotich says, “There are many successful organizations that don’t operate with a budget, but organizations that do can allocate dollars to those things that will ultimately improve and grow the business.”
- A lack of accountability.
Freedom in the workplace is very important. Sweden employers who have begun a trend of avoiding direct orders to their employees and allowing feedback have had huge successes in employee motivation levels. However, that does not excuse employers of the responsibility to hold their employees accountable. Make sure they are being productive and dismiss those with severely lacking work ethics. It is better to go to the trouble of hiring someone new if they will improve the work spirit and productivity.
- Ignoring customer opinion.
Want a sure fire way to send your business in a tail spin? Ignore customer complaints and needs. Your priority is selling your product. No one will continue to buy a product that doesn’t work for them. You do need to stay aware of trolls and money seekers, but handling customer opinion with care is paramount. Forbes outlines the importance in realizing that markets are conversations in an article by Eric T. Wagner. “Dialogue is key,” Wagner says. “And 140 character tweets don’t count. Real dialogue with real customers (via whatever channel is best for them).”
- Staying stagnant.
Companies need growth of some kind to keep on keeping on. They need to communicate their strategies toward growth, as well. Employees and customers need to see steady and upward growth in a clear and concise way. On communicating goals for differentiation, Wagner says, “Many entrepreneurs work hard to discover a point of differentiation then blow it because they do not communicate their message in a clear, concise and compelling manner. I watch many entrepreneurs bleed to death through their failure to communicate.”
Probably the best way to avoid failing in the business world is to pre-plan and be quick on the draw.