What mistakes or issues or acts of nature cause your company to fail?
This of course is for small companies. Staff of less than 1000.
We can all point the finger at everyone in the world for the failure of your company. Unless your company got beamed up by aliens or anything of equal uncontrollable event, the fault lays on the owner, for a poor decision, or hiring a poor decision maker or a poor defense against hostile companies.
A big mistake small companies make, is thinking they are too big for their customers. Selecting customers or customer types that are too much hassle for ” The Big Move”. “The Big Move” is the move that many companies make to expand their abilities and and income. You can not expand if you reduce. You just change your business model when you remove one field of your duties and implement a new duty. This method is a pass or fail method. Many company owners think of that method as just another gamble, and they have been gambling since the company was first conceived. They do not realize that during the time company is going through change; employees will be getting trained and trying to forget old methods, your company will not be taking in the income of the old way while you build rapport in the new way.It’s okay to take on new tasks. it’s okay to take on more profitable tasks. It’s okay to expand. be careful. Don’t drop the jobs that are “too piddly for you now”. Especially if you get a larger quantity of the small jobs but the income is equal or slightly lesser than the big jobs.
Another is dropping what has been attracting your customers. Things like advertisement or customer reliability. Let’s say you have this employee, when he goes out on a job site, he eats a bowl of green beans before he starts work. Every single time. One day you are talking to one of your customers and they mention the green bean thing, and laugh about it and let you know they think it is pretty reassuring that your employee makes sure they are eating well before they work. It would probably be in your best interest not to tell that employee that he or she is on the clock and should not be wasting time on the clock eating. you might actually want to request all of your employees eat a bowl of green beans on a job site and make sure everyone on the job site sees this event. You may even want to have a few sprinkle garlic or lemon juice in the bowl and see if that gets you a call with a laugh. Heck have a green bean barbecue and invite all of your customers. Until there is a complaint about something, don’t change it. Use that as your signature. Imagine if Coca~cola decided to only sell two liters of soda. Would you not decide to drink Pepsi products when you stop in a fuel station and grab yourself a single serving of soda? I know I would. And if the billing is right, I would probably get so used to Pepsi, I wouldn’t even consider Coca~cola. It would be foolish for Pepsi to say ” Well If they are doing it, we will do it. So don’t copy your competition. Out do your competition.
Provide a larger variety, provide a greater quality and provide a fair price. Don’t bump your price to match the competition. But you can lower the price to match.
Do not over spend on flash. Do not spoil your employees. Spoiling your employees is getting them a GPS system for local delivery of less than a 10 mile radius. Too much padding can lead to employees not knowing how to work in the instance that something breaks or goes wrong. Could you picture the look of a delivery company if the battery in two of the GPS devices are drained and everyone thinks they are too good to take out the battery and change it their self, so they higher a repair man to do it? That could get quite costly. It’s okay to work up morale in company wide gifts for achievements. This is fine. and this works. but make certain the employees know that this is like a trophy for accomplishment, and not a requirement of the position.
Your employees are not monkeys and they are not machines. They are not being punished by you for being hired by you. Any boss that says “time to lean is time to clean” is a poor member of management. To hire people just to fill a spot, is the mentality of “you are holier than thou” and the hired new employee is just meat and lesser than you because they work for you. Remember, they do not work for you. They work with you and you have agreed to split the income of your company with the employee for what they bring to your company. Of course that employee is not entitled to half, that is why you have an agreed amount. To think differently of your employees will lead you to having to train employees so often there will be no way to run at optimal level.
I really feel like I need a disclaimer with this.
None of this is set in stone for every company and every business. This may work for some, and cause problems for others. So it is in your best interest to consult with someone in your area that can make decisions for your company, rather than just something you read on the internet. Take this post as a reminder of morals and nothing more. Anything you do will be your responsibility. The writer of this post can not be held responsible for the failure of your company for taking any of this information in or adjusting your company to match this posts statements. This post is not a “do and don’t do” post. This post is meant for you to read after your company has gone under and you are trying to figure out what you did wrong or what other people think would have been better or worse. DO NOT DO ANYTHING THIS POST SAYS, JUST BECAUSE YOU READ IT HERE. These are incomplete ideas that are only useful if you know more about your company.