Business management is a challenge. It feels like we’ve never dealt with a bigger test than the one that’s facing us now. I’m optimistic but concerned about running into bigger challenges. Does running a business ever get easier?
Thoughts of the Day: Business management means facing and meeting challenges. Businesses are always either growing or declining. As they get bigger, they encounter new things. Staying ahead of the curve is a business owner’s top priority. Setting the proper pace for progress follows closely after. Build an education plan for the business to keep things fresh and forward-thinking.
Challenges in business management
Fortunately, people tend to be inquisitive. That’s a valuable trait to have in a world that is constantly changing. Like people, a business is better off seeking new knowledge and opportunity for growth. The challenge is growing the business without getting overwhelmed.
Business owners have to make a choice. Do they figure out how to do things well and then hold to the status quo? Or do they continually look around for new and better ways of doing things? There’s a balance; enough growth, enough challenge, balanced with time to digest and master.
Business owners are often off chasing the next big opportunity, looking for the next big thing. That’s good because it helps keep the business fresh. And bad if they underestimate the stress that will result.
Impactful contributing factors
It’s important for every owner to tune in to what’s happening inside the business, as they look for the next milestone to head towards. They need to have a clear understanding of capabilities and limitations.
- Is it time for the next growth leap? Or is it better to hold and prepare?
- How ready, willing and able are employees to take on more?
- What additional skills and competencies will be needed for that next leap forward?
- How easy or hard will it be to acquire talent and build new systems?
- Is the current employee team ready to work with a new batch of outsiders?
- How many outsiders will be needed? How many outsiders are too many?
- What happens if the business waits a bit – will the market overrun it, will it run out of time, will it get stuck, or will it be perfectly okay?
These are some of the questions a business owner needs to answer before heading out to take on the next big idea. Think about people who have been reliable performers. One day they start making mistakes – more than you’d expect. What’s different?
Improve performance and profits
Are they suddenly overwhelmed with a volume of work? Are things at home a distraction? Is it a new task for which they are unprepared? Have work hours changed? Errors are a signal that they’ve just moved beyond a level at which they could be competent.
When mistakes crop up, ratchet things back. Take some tasks off their plate. Check if the tasks they’re doing are ones they’re well suited for and willing to do. Consider re-arranging who does what in order to get a fresh perspective. Have a frank discussion about what they are dealing with and whether they can do more. Solve current breakdowns before jumping ahead.
Engage in controlled growth by building an education plan for the company overall, and for every employee. Identify skills and knowledge needed for a business twice the size. Sort out which employees can take on a lot more, and which might do better with smaller learning assignments. Weave education into the day-to-day business. Have quarterly progress checks. Look for signs that people are getting better at mastering tasks permanently before deciding to speed things up.
Looking for a good book? The Peter Principle, Why Things Always Go Wrong, by Laurence J. Peter and Raymond Hull.
