If there's any statistic known by most Americans, then it's that 8 out of 10 businesses fail. This dismal picture of entrepreneurship has been tossed around recklessly for years. It's time to produce different results in small business. In order to truly transform the situation we have to identify the problems and focus on the solutions. Here are 10 common issues that cause a hopeful start-up to hang up it's shingle for good (& the solutions):
#1 DIY Burnout
I love Do-It-Yourself as much as anyone. My son and I love to go to the kids' workshops at Home Depot. There's great satisfaction in creating something out of nothing. However, as an entrepreneur too much DIY can lead to burnout. I'm not saying that you can't do everything. I'm saying that you won't like everything that you have to do. Doing everything yourself is exhausting. Initially, you will be a one-woman (or man) show.
That's beneficial because you learn very quickly which tasks you like and those that you dislike. The things you don't like to do need to be outsourced (contracted out) to someone that loves to do them.
Solution: Continue to believe that you can do anything, but stop trying to do everything. Direct your efforts towards your core strengths. Visit internships.com, elance.com, odesk.com, or fiverr.com to free up your plate. You can hire someone for around $5 - seriously.
#2 Lack of Information Products
Whether you have a brick-and-mortar business or an online business, info products allow you to earn passive income. An information product can be a course, book, membership site, mind map, white paper, and on and on. They can be in digital form like an e-course or in physical form like a paperback book. Without info product creation small businesses become trapped in a feast or famine cycle. If you don't work (speak/consult/paint/etc), then you don't eat (get paid). One bad month or losing your top client can cause financial setbacks, but passive income can provide a nice cushion when positioned correctly. To get details on how I can hold your hand throughout the product creation process visit www.expandyourheart.org/coaching. It's never too soon to start creating products.
Solution: Package your intellectual property into digital/physical products. Write out a document that addresses and solves an issue, give great value, save it as a PDF, sell it on your website, and deliver it to your clients/customers.
#3 Playing Small
Just because you're a small business doesn't mean you have to act like one. Act as if you were a Fortune 500 company (within your financial budget of course). How would you treat your clients? What would your title be? Everyone starts somewhere, but your current situation is only temporary. You may not have any paid staff right now, but you're a business owner and that is commendable. Don't downplay the fact that you have the courage to go after your dreams and make an impact in the world.
Solution: Develop systems/processes for every area of your business and document them. Create templates for common occurrences like email communication, invoices, and contracts.
#4 Taking it Personally
By definition entrepreneurs are risk-takers. Unfortunately, every risk doesn't go as planned and your confidence takes a hit. There will be hurdles and setbacks, but it's all a part of the entrepreneurial journey. Just because it didn't work the first time doesn't mean that it won't work. A no today, isn't a no forever nor is it a personal attack. One slight tweak could be all that's needed for you to be in the right place, at the right time, speaking to the right people. You may not need to change anything at all, perhaps the timing just wasn't right. You're a visionary and some people need a little more time to grasp your genius.
Solution: Guard your confidence daily. Affirm your worthiness and celebrate your strengths. Remember, they're the ones missing out on working with you.
#5 One and Done
You uploaded a video on YouTube and now you're done, right? Nope. Now you find a way to re-purpose the work you've already done. It's all about working smarter instead of harder. Use a short clip of the video in a Facebook ad to build your list or you can take a few key ideas and create social medial posts or memes. The options are limitless.
Solution: Relentless persistence and uninhibited creativity. Keep trying new things, making adjustments, and trying them again. Ask yourself, "What else can I do with this?"
#6 Neglecting What You Have
You have followers and clients - maybe not as many as you'd like - but you have them. How often are you communicating with them? People aren't buying your service or product...they're buying you. They spend money with you because they know, like, and trust you. If you don't nurture the relationship, then they'll go to someone that will. The same is true in all areas of your life and business. A sense of community and appreciation are basic human needs. Successful business owners satisfy these needs for their customers.
Solution: Consistent communication and show your appreciation. Start a private Facebook group. Offer an affiliate (referral) program where they earn money for every customer they send to you. Giving incentives isn't nearly as expensive as going out and getting a new client.
#7 Competitor to the End
Everyone has a competitive streak, especially if you've played sports. Business isn't a sport where you have to take the other guy out in order for you to win. Feeling like you're in a competition will have you looking over your shoulder and worrying about what the other guy is doing. It's a waste of your valuable time.
Solution: Collaborate with business owners that have complementary products or services. There's more than enough for everyone. Co-host a live or virtual event that serves your target market.
#8 Laser Focused on the Fruit
Lots of late nights, blood, sweat, and tears go into building your dream. You desperately want that breakthrough, viral video, or first client. So much so that every day you look for it to appear. You should absolutely expect all of your efforts to yield rewards, but you have to trust that they're coming. When you plant a seed in the ground, do you go the ground each morning to see if anything has sprouted? No, you trust that it will grow because you planted the seed in good soil in a sunny area and water it daily.
Solution: Take action daily in your business. Believe that you will be rewarded.
Trust yourself and allow the Universe to work its magic.
#9 Big Net Syndrome
A fisherman uses a big net to catch as many fish as possible and then throws back the unwanted ones. This approach has different results for an entrepreneur. Rather than attracting the masses, you end up with an empty net. It is physically impossible to be all things to all people at all times. By choosing a specific niche you'll be able to speak to your ideal client's pain points and they'll be able to identify themselves.
Solution: Get clear on the person you serve and the problem you solve. One person with one problem.
#10 Don't Invest
Countless business owners only think about the cost of something. Sure, the money you spend on a coach could go towards marketing. The price of one piece of time-saving equipment is equal to a one-month inventory supply. The problem is when you focus on the cost of something you'll always think about what you're losing. You're in this for the long haul, so ultimately these should be seen as investments.
Solution: Hiring a coach, buying software, and outsourcing are all investments that yield priceless time-saving returns. You don't know what you don't know. Invest in training, equipment, and software that will help you reach your goal faster. Invest in your own education and personal development regularly.
Which solution will you implement to improve the odds of your small business? Leave a comment below and I'll come back a join the conversation :)
#1 DIY Burnout
I love Do-It-Yourself as much as anyone. My son and I love to go to the kids' workshops at Home Depot. There's great satisfaction in creating something out of nothing. However, as an entrepreneur too much DIY can lead to burnout. I'm not saying that you can't do everything. I'm saying that you won't like everything that you have to do. Doing everything yourself is exhausting. Initially, you will be a one-woman (or man) show.
That's beneficial because you learn very quickly which tasks you like and those that you dislike. The things you don't like to do need to be outsourced (contracted out) to someone that loves to do them.
Solution: Continue to believe that you can do anything, but stop trying to do everything. Direct your efforts towards your core strengths. Visit internships.com, elance.com, odesk.com, or fiverr.com to free up your plate. You can hire someone for around $5 - seriously.
#2 Lack of Information Products
Whether you have a brick-and-mortar business or an online business, info products allow you to earn passive income. An information product can be a course, book, membership site, mind map, white paper, and on and on. They can be in digital form like an e-course or in physical form like a paperback book. Without info product creation small businesses become trapped in a feast or famine cycle. If you don't work (speak/consult/paint/etc), then you don't eat (get paid). One bad month or losing your top client can cause financial setbacks, but passive income can provide a nice cushion when positioned correctly. To get details on how I can hold your hand throughout the product creation process visit www.expandyourheart.org/coaching. It's never too soon to start creating products.
Solution: Package your intellectual property into digital/physical products. Write out a document that addresses and solves an issue, give great value, save it as a PDF, sell it on your website, and deliver it to your clients/customers.
#3 Playing Small
Just because you're a small business doesn't mean you have to act like one. Act as if you were a Fortune 500 company (within your financial budget of course). How would you treat your clients? What would your title be? Everyone starts somewhere, but your current situation is only temporary. You may not have any paid staff right now, but you're a business owner and that is commendable. Don't downplay the fact that you have the courage to go after your dreams and make an impact in the world.
Solution: Develop systems/processes for every area of your business and document them. Create templates for common occurrences like email communication, invoices, and contracts.
#4 Taking it Personally
By definition entrepreneurs are risk-takers. Unfortunately, every risk doesn't go as planned and your confidence takes a hit. There will be hurdles and setbacks, but it's all a part of the entrepreneurial journey. Just because it didn't work the first time doesn't mean that it won't work. A no today, isn't a no forever nor is it a personal attack. One slight tweak could be all that's needed for you to be in the right place, at the right time, speaking to the right people. You may not need to change anything at all, perhaps the timing just wasn't right. You're a visionary and some people need a little more time to grasp your genius.
Solution: Guard your confidence daily. Affirm your worthiness and celebrate your strengths. Remember, they're the ones missing out on working with you.
#5 One and Done
You uploaded a video on YouTube and now you're done, right? Nope. Now you find a way to re-purpose the work you've already done. It's all about working smarter instead of harder. Use a short clip of the video in a Facebook ad to build your list or you can take a few key ideas and create social medial posts or memes. The options are limitless.
Solution: Relentless persistence and uninhibited creativity. Keep trying new things, making adjustments, and trying them again. Ask yourself, "What else can I do with this?"
#6 Neglecting What You Have
You have followers and clients - maybe not as many as you'd like - but you have them. How often are you communicating with them? People aren't buying your service or product...they're buying you. They spend money with you because they know, like, and trust you. If you don't nurture the relationship, then they'll go to someone that will. The same is true in all areas of your life and business. A sense of community and appreciation are basic human needs. Successful business owners satisfy these needs for their customers.
Solution: Consistent communication and show your appreciation. Start a private Facebook group. Offer an affiliate (referral) program where they earn money for every customer they send to you. Giving incentives isn't nearly as expensive as going out and getting a new client.
#7 Competitor to the End
Everyone has a competitive streak, especially if you've played sports. Business isn't a sport where you have to take the other guy out in order for you to win. Feeling like you're in a competition will have you looking over your shoulder and worrying about what the other guy is doing. It's a waste of your valuable time.
Solution: Collaborate with business owners that have complementary products or services. There's more than enough for everyone. Co-host a live or virtual event that serves your target market.
#8 Laser Focused on the Fruit
Lots of late nights, blood, sweat, and tears go into building your dream. You desperately want that breakthrough, viral video, or first client. So much so that every day you look for it to appear. You should absolutely expect all of your efforts to yield rewards, but you have to trust that they're coming. When you plant a seed in the ground, do you go the ground each morning to see if anything has sprouted? No, you trust that it will grow because you planted the seed in good soil in a sunny area and water it daily.
Solution: Take action daily in your business. Believe that you will be rewarded.
Trust yourself and allow the Universe to work its magic.
#9 Big Net Syndrome
A fisherman uses a big net to catch as many fish as possible and then throws back the unwanted ones. This approach has different results for an entrepreneur. Rather than attracting the masses, you end up with an empty net. It is physically impossible to be all things to all people at all times. By choosing a specific niche you'll be able to speak to your ideal client's pain points and they'll be able to identify themselves.
Solution: Get clear on the person you serve and the problem you solve. One person with one problem.
#10 Don't Invest
Countless business owners only think about the cost of something. Sure, the money you spend on a coach could go towards marketing. The price of one piece of time-saving equipment is equal to a one-month inventory supply. The problem is when you focus on the cost of something you'll always think about what you're losing. You're in this for the long haul, so ultimately these should be seen as investments.
Solution: Hiring a coach, buying software, and outsourcing are all investments that yield priceless time-saving returns. You don't know what you don't know. Invest in training, equipment, and software that will help you reach your goal faster. Invest in your own education and personal development regularly.
Which solution will you implement to improve the odds of your small business? Leave a comment below and I'll come back a join the conversation :)
This article may be re-printed as long as you include the information below:
Sarah packages your passion into digital and physical products. Sarah Aderson is an international speaker, Leg-a-SHE Strategist, and co-author of the international bestselling book Motherhood Dreams & Success: You Can Have It All! She empowers women entrepreneurs to charge what they're worth so they can leave a legacy not only for their family, but the world. Sarah transforms your business into an empire.
Learn more about Sarah's work at www.expandyourheart.org
Pick up your complimentary Work Smarter e-book here.
Learn more about Sarah's work at www.expandyourheart.org
Pick up your complimentary Work Smarter e-book here.
