Faced with a lousy job market, many people are trying the entrepreneurial route these days. They start their new ventures which such high hopes and enthusiasm. But little do most of them know, that they probably won’t see their companies operating through 5 years, much less turn a profit. At least, that’s what the Small Business Association (SBA) says. So why are so many new small businesses fading so quickly? Chances are they are falling prey to one or more of the seven deadly sins of business. Do recognize any of these in your own company?
Wrath– Whether it’s a negative comment from a customer, a competitor’s crafty marketing strategy, an employee’s request for some change, or a lender’s rejection for financing, anger has no place in business (that is, if you want to stay in business). Success in business has a lot to do with relationships. Knowing how to gracefully receive criticism, accept a set back, and recognize another’s strengths without feeling threatened, are all keys to business success.
Greed– You can’t have it all- especially if you’re running a small business in a competitive industry. You have to take the time to define your niche, build a reputation, and cultivate a loyal customer base, and all of this requires you to give of yourself and your business and… to have patience. So many businesses go under because their owners were too caught up in the “quick fix” instead of focusing on a more long-term strategy.
Sloth– If you build it, they won’t necessary come- where “they” is defined as customers, revenues, and potential investors. A successful business, no matter what the structure, the size, or the industry requires work, or it will not be successful. Areas that require special attention and effort include: your marketing research and marketing strategies, financial management, and quality control.
Pride– Know-it-alls don’t usually make good businesspeople. If you want to be successful in business, then don’t shun asking questions from your mentors, peers, and customers. Be open to feedback- even where it includes strong criticism, and learn to embrace your mistakes. The most successful business people out there can typically write a book about all the mistakes they made before they got to where they are.
Lust– Before you jump into bed with the latest and greatest in technology or business partnerships, make sure you do a little research beforehand. You should ask yourself, “will this service, technology, or business relationship truly help my business? Or am I just seeing a lot of smoke and mirrors?”
Envy– Instead of thinking about how much greener the grass is on the other side, you’ll get much further if you take the time to weed out, mow, and water your own lawn. In order words, you can consider where your competitors are excelling, but only to the extent that you use what you see to try to develop relevant strengths within yourself and your own business.
Gluttony– Too much of a good thing will leave you with a stomach ache and an ailing business. Usually, it is not good business practice to focus too much attention on one marketing medium or strategy or to try to draw out more and more business from a small group of customers. Flexibility and and a touch of healthy diversity is often the path to success in business.
