Who is Really Killing the Economy
We are a nation of small businesses…and therein lies the problem.
Most large companies understand that they must make the investment in additional training for their employees in order to improve business results. On the contrary, small business owners rarely make that investment and those that do usually look to that expense first when cost-cutting measures are needed.
What keeps $1m companies from growing to $5m, or $5m becoming $20m? Some say access to capital. Others refer to government regulations. Most say it’s the general state of our economy.
We have a different take…
For us, the problem appears clearly to center on the owners of small and medium sized businesses. The cornerstone of our economy, who have the potential to be the solution, are now part of the problem. Our country needs business builders, not business dwellers or simply more business starters.
Has the business outgrown the owner? What could it do if they were not holding back on the reins?
Here are some of reasons many small business owners are in this position:
Fear of losing control
Sometimes an owner feels their personal identity is completely intertwined with the business. They only allow the company to develop at a rate that is within their comfort zone, holding tight to a sense of security and control.
Lack of energy or motivation
They’re exhausted. After years of hard work and stress, good times and bad, they’re simply not the driving force they once were. It’s human nature.
Change in perspective
The “What have I got to lose?” mentality that was the catalyst for starting the business has now become “I can’t afford to lose what I’ve got.” This usually coincides with the business owner beginning to lose confidence in their own abilities as they begin to manage the business simply to avoid failure, rather than continuing to manage for success.
Lack of required skills
The typical small business owner is not particularly consistent in making the investment in personal professional development. They can’t seem to justify the expense or the time. So the skills they started the company with are generally the same skills they try to rely on to run a very different business today.
Trouble letting go
The hard-headed determination that got the business to where it is now is difficult to set aside as it becomes necessary to hire people to share the load. But they can’t do it all themselves, and so many of the critical things that need to be done are delayed over and over again.
So, what’s the solution?
Experience shows that entrepreneurs don’t typically make great business builders on their own. Very few have prior experience as the CEO of a growing company. They don’t ask themselves “Am I equipped with the skills I need to take my business to the next level?” or “Do I have an effective plan in place to ensure that our goals are going to be met?”
If you’re a small business owner and you’re not asking yourself those types of questions, it might be you that’s actually holding your business back.
Make the time to develop your CEO skills. Get advice from someone with the experience that you lack, and learn about strategic planning and how to implement a regular training routine for yourself and your staff. Learn to be a better business owner, and you’ll soon find that you’re running a much better business.
For more information or to discuss your particular needs in this area with an
expert business coach, please contact us and schedule a complimentary initial
telephone consultation where we’ll provide a customized
12-point growth plan for your business.
Breakout Consulting, LLC
Dearborn, MI ∙ San Diego, CA