Businesses are regarded as separate entities from the owners. They exist and should be taken care of until they are mature enough to fend for themselves. However, many entrepreneurs do not understand these concepts and keep harming their businesses by indulging in bad management practices. A good business should last for at least 5years, but your business may crash if you do not stop certain bad habits.
What Should I Know?
Owning a business is not an easy job and requires a lot of money, time, and patience. Businesses sometimes do not make any profit until 5years or more of existence. This can be exhausting, but you can’t afford to let it get to you. The journey to success might have just begun, and giving up should not be on your to-do list. So one needs to understand the basics of owning a business and stop bad business managerial habits.
1) It is not a Ponzi scheme
Your business would experience a lot of ups and downs, but you should be up to the task. The entrepreneur might need to get stronger and surf the waves. Owning a business in Nigeria can sometimes be frustrating. But it’s a business, not a Ponzi scheme, so it doesn’t pay overnight. This has been one of the major reasons for some entrepreneurs to jump from one business to another. This is because a particular business may be profitable in the first two years, and the entrepreneur then begins to think he is in the wrong business when this changes. Leading to the establishment of another business, and yet another business, until his new fate pushes him to just get a white-collar job.
1) It’s a Separate Entity
As stated earlier, this is one of the earliest principles of owning a business. The entrepreneur gains by always remembering that that business is separate from its owner. The moment you handle your business as just another setup and not a complete entity, then you might have started to downplay its importance, which may become costly and lead to the crash of the business.
Bad Habits I Should Avoid
The entrepreneur needs to treat the business with respect, as a result, he/she is not allowed to exhibit poor habits that may be harmful to the health of the business.
1) Spending the business money
This is to further buttresses the point about businesses being separate entities that should be treated as such. You do not expect a business to grow with poor financial decision-making. Businesses survive on plow-back financial systems, which means bringing back business profit for more growth and development. This system doesn’t fair well under the mismanagement of funds and unnecessary utilization of profits.
Your business is young and striving towards long-term success that may birth certain diversifications with time. But rushing your business into diversifying may not be the best at an early stage. This is neither good for the business nor the management. The business, therefore, faces a heavy burden, and management may become confused about what exactly the focus is.
3) Avoid Pity Among Incompetent Employees
When a department or an individual is not as effective and efficient as the company would like, then the management must always act accordingly. Failure to identify and resolve such means it may go from affecting a certain department to further hampering general productivity. Always address lackluster performances no matter who is involved or where it is coming from.
4) Stop Micromanaging Your Team
Your team is an integral part of the business, as its members should be selected to grow the brand. So do not make it difficult for your team to carry out their responsibilities by either finding it difficult to delegate tasks to them or generally making it difficult for them to be productive.
5) Don’t Bow to Failure
Patience! A lot of patience is needed in the business world. Even when your business may have failed you over and over again, never accept defeat, for the moment you do, your fears would have the best of you.
Your business is important and must remain healthy. Your business may crash if you do not stop these bad managerial habits. An understanding of the dos and don’ts of business ensures a healthier entrepreneurial journey.