A business owner will face numerous challenges on a daily basis. Often these challenges will require some problem solving or taking a tough decision, but it can also be the case that there is a broader problem at hand. It could be that you are unwittingly sabotaging your business efforts in a way that leaves you fighting against the tide. Getting to grips with these broader problems can help you run a smoother operation with a focus on the tasks that provide a high return on investment.
Avoid Wasting Time on Needless Tasks
Almost all entrepreneurs will sometimes spend too much time on unfocused activities. There are so many different facets to running a business, but that doesn’t mean they are all of equal importance. It is easy to get dragged into the bureaucracy of accounting, taxation, and administration and find you have no time left for any other tasks. While it is certainly important to structure your business correctly, you can end up harming your revenue and growth potential through unnecessary distractions.
Don’t Try to Do Everything Yourself
Many entrepreneurs find it difficult to let go of common tasks within their business. If you have grown your company from scratch, handing over control to other people can be difficult. However, growing your business requires delegating and outsourcing which, ultimately, can allow you to oversee all operations. Instead of spending long hours learning to design graphics or write blog posts, for example, you could outsource this work and focus on tasks which generate the highest amount of revenue.
Pinpoint Exactly What Gets Results
In every business there will be a number of factors that produce most of your results. Known as the Pareto principle, this rough law states that 80% of results come from 20% of the causes. When you know the factors that are producing the bulk of your revenue, focusing your attention to these things can take your business to the next level. You may think you can deduce the causes of your success through intuition, but the only way to be certain of what works is through tracking and testing. Consistently, you should aim to set up new experiments, track the results, and implement any changes.
Increase the Value of Each Customer
Acquiring new customers is one of the trickiest parts of running a business. Whether you are measuring by time or money, a brand new customer will typically be very costly. Many people take the short-term view by only trying to achieve a small profit from a single sale, but by increasing the value of each customer you can take a long-term approach. For example, start by offering a low cost, possibly loss leader product, move your new customers onto a more expensive product, and then offer a high price coaching program.
Resist Always Looking For the Next Big Thing
Most entrepreneurs are frequently coming up with new ideas and getting inspired by other businesses. Brainstorming ideas is a good thing, but you can sabotage your business by always chasing the next big thing. Scattered thinking can lead to a lack of focus or commitment to each project, typically resulting in a lot of unfinished work. Instead, aim to think critically about the way you run your business. Even if you are hit with inspiration, don’t change course unless you have made certain it is the right thing to do. A clear, focused, and disciplined approach to your business will allow you to see projects through to their conclusion.
Running a business is difficult enough as it is, but when you are unwittingly sabotaging your own efforts it becomes impossible to manage. Learning to spot any obstructions before they cause any real damage is key to maintaining an effective business, so try to scrutinize your working methods and take an aerial perspective over all operations.