My Achilles”™ heel is that I”™m way too optimistic. Unfortunately sometimes I get the company in over its head. My wife says I”™m taking on too much stress. My staff is grumbling at how hard I”™m pushing. And I”™m having some sleepless nights figuring things out. Can you help?
Thoughts of the day: Entrepreneurs are optimistic, that”™s what helps them get the business off the ground. Long-term good business owners learn to play defense as well as offense. Put all of your desires into a plan where you can see the demands and manage the workload. Learn about balance.
Entrepreneurs live in the land of hope. Even when they say they know things could go wrong, they tend, in their planning process, to act as if things will go right. However, as the business grows, it becomes as important to be able to keep the company safe as it is to risk everything on a good play.
Changing from offense to defense is truly challenging for entrepreneurs who see upside opportunities as so attractive they forget the risks. They bull on through to the other side of a bad situation, believing all things will work out. That”™s true, until it”™s not; until one thing too many goes wrong.
We”™ve heard it all. The business gets overextended and the bank calls its loans at the wrong time. The owner gets sick. A key player leaves. A big client cancels its orders. A competitor buys up companies and builds a noose. Supplies aren”™t available when a big order comes in. The IT system crashes.
There”™s a reason why three out of four businesses fail in every 10-year cycle. No matter how many 10-year cycles the business has been through, the chance of failure is much greater than the chance of success. Longevity doesn”™t equal durability when it comes to building a business.
As the business grows, no longer does the owner win by taking the biggest risks. The scope of challenges grows. The volatility of the business increases. The business is at greater risk of failure every year.
Once the business is off the ground, with enough size to be stable, the owner has to shift away from an all-offense approach and learn to play a good game of defense, too.
What is defense? It”™s thinking through what could go wrong and preparing to handle those challenges. It”™s slowing down the pace of growth to allow all parts of the business to catch up. It”™s having a plan of attack that allows owner, managers and employees to be on the same page.
Start by building a realistic plan of where to take the business. Map out growth and profitability goals. Clearly define the resources that will be needed. Set up KPIs, or key performance indicators. Assess vendors, clients and employees for current ability and growth potential. Map out the organization at twice the size and define what has to get built, by when, so you don”™t blow things up as you grow. Make yourself accountable to someone.
Learn to stick to the plan. When things go right, keep going. Don”™t accelerate. Instead, make time to enjoy the ride.
When things go wrong, assess the quality of the plan. Make changes as needed. Slow down until things are back on track.
As a entrepreneur, recognize you”™re an adrenaline junkie. You get juiced up by having to jump in, solve problems and make things happen. You need to be needed.
The transition to business owner of a long-haul business is as much about getting off the adrenaline rush as it is anything else. Find a hobby to distract you. No more hero moves. No more pushing things so hard that you have to jump in and do a rescue operation. It”™s about smooth sailing, following a plan and rewarding people for doing their jobs.
Looking for a good book? Try “How to Build a Business and Sell It for Millions” by Jack Garson.
Andi Gray is president of Strategy Leaders Inc., strategyleaders.com a business-consulting firm that specializes in helping entrepreneurial firms grow. She can be reached by phone at (877) 238-3535. Do you have a question for Andi? Please send it to her, via email at AskAndi@StrategyLeaders.com or by mail to Andi Gray, Strategy Leaders Inc., 5 Crossways, Chappaqua, NY 10514. Visit AskAndi.com for an entire library of Ask Andi articles.
