Being an entrepreneur, requires you to make accurate and timely decisions. Every decision that you take, impacts your business. There are several common pitfalls that business owners often make. Lets us glance at a few of them and know how you can overcome them.
1. No set Business Goals
A Business without Goals, is like driving a car with no destination and no direction. You end up going to work aimlessly, and then feel unsatisfied about your business growth. Without Goals or targets, your company lacks the focus needed to move forward. A lack of goals means that your company does not have a clear vision for the future.
Business Goals are important as they give a sense of direction to your business. They guide your daily actions to accomplish them. They are the foundation to design your Action Plan.
A common business objective is to run a profitable operation, which typically means increasing revenue while limiting expenses. To reach this objective, goals could consist of increasing annual sales by 10 percent in 3 months or landing three new accounts each month. Expense objectives could involve finding a new operating facility that decreases your rent by INR 2 lakh a month or cutting monthly utility bills by 15 percent. When goals are specific and time bound, there can be no confusion about what exactly needs to be done to accomplish the goal.
2. No written Action Plan
A business strategy is a set of guidelines created to reach a specific business goal.
Strategies can range from annual budgets to individual marketing strategies for the release of new products. Without a coherent overall strategy, a business has no road map to follow when pursuing opportunities and running daily operations.
Business plans and strategies are used to allocate company resources into projects and operations that need them to achieve the business goals. When there is a lack of planning, or planning is not coherent, it's difficult to create budgets for special projects and understand the personnel and funding resources necessary to launch new products and grow the company. Instead, leaders disperse funds "on the fly," as managers request them, without a budget to compare against. Dispersing funds this way, a company can then find itself short of funds for critical activities such as payroll and paying vendor invoices.
The consequences of not having a comprehensive business strategy can be severe. As they say- "failing to plan is planning to fail" -certainly applies here.
3. No Progress Reviews
Measuring progress towards the goals is equally important. Regular reviews allow you to see what’s missing in your actions, so you can make the required changes. Your weekly meetings allow employees to stay on track as they work toward your company's goals. Even a quick update will keep you in the loop and keep them accountable to their goals over the next seven days.
The Goals Journal can help you avoid these mistakes.
The Live by Design Goals Journal is a planner for entrepreneurs. This Business Planner provides a powerful, yet simple Action System to help you set clear goals, create an action plan and review weekly progress. It’s time to simplify your business goals journey and see the growth you have been working for.