As an entrepreneur, it’s extremely important that you avoid business catastrophes. If you’re only just starting out, you likely have a very limited supply of resources, new clients who haven’t yet developed loyalty to your brand, and a tenuous reputation that is highly vulnerable. Here are 5 steps to avoid a business catastrophe.
1. Stay at least one step ahead of your competition.
Your competition is continually seeking out new ways to grab more share of the market. Their hunger for growth and ever-increasing profits is a direct threat to your own success, so you need to always be thinking next generation products and services. Keep your head out of the books long enough to spot upcoming trends, and find new ways to make your business relevant.
2. Keep communication lines open.
There’s nothing worse than broken down communication. When employees and management stop communicating all sorts of ugly things can happen. Looks and random gestures suddenly take on new meaning, and paranoia sets in. Things can get misunderstood and soon your office will feel like a rerun of “Three’s Company.” Make it a point everyday to communicate with others in your company, even if you have nothing urgent to report.
3. Keep it positive.
A positive work environment is a place where employees enjoy coming every day. They will feel valued for their contribution, and feel respected. They may feel that they are adding something good to the world, and that they receive recognition for their hard work and effort. In short, make your employees feel the way you would want to feel in their place. This is the easiest thing to achieve on this list, and yet it’s one of the most common shortcomings of failed businesses.
4. Be flexible.
There’s a rumor that the reason Blockbuster didn’t get into the streaming video business soon enough is that the higher-up executives ignored the trends and refused to alter their “proven” business model of brick and mortar stores. Whether the rumor is true, the story of Blockbuster’s fall from being the leader of the movie rental industry is one to learn from. Be flexible concerning your business. If new ideas are put forth, consider them before striking anything down.
5. Be proactive.
As soon as you sense a problem, take steps to address it. If you aren’t proactive, your only option will be to react to problems, and that doesn’t give you half as much power as you would have had if you had taken care of things right away.
These are five steps you can implement today to avoid disaster. To learn more about succeeding in business and the EOS system, contact us.