3 Business Oversights & How to Avoid Them
When it comes to growing a business, sometimes even success has a way of overcoming the best ideas. Things like growing too fast, too slow, not having a plan, and not having the right people are a recipe for challeges. You want to scale, but you just don’t know what “levers to pull” (or not pull).
There are 3 common financial oversights that business owners face when trying to grow a business. Putting a plan in place to conquer them can clear the runway for smooth growth and scaling.
And as an added note, not only do these issues apply to business, they also apply to your personal financial stewardship!
Oversight #1: Not Having a Plan or Forecast in Place
Without a clear strategy, businesses can struggle to keep up with their desired growth. Without a plan and forecast, specific challenges fly in the face of your success:
– You don’t know where you want to be.
Growing a business takes leadership, and leaders need to know they will bring the team along for the journey. Without a plan, you can quickly become lost and unsure of where you want to take the company, especially when changes arrive.
You need a roadmap to know where to focus efforts and talents. Failing to plan leads to stagnation and even decline in the long run.
– Over- or Under-reaching
Imagine you want to take your family out to a picnic, but you don’t read the weather forecast; you just pack up and go as quickly as possible. When a storm rolls in, what do you do?
Businesses are the same. When you don’t correctly read the forecast of the market, economy or the financial situation you’re in, everything becomes touch and go. Instead of being proactive, you end up being reactive.
You can then become pressured to grow too quickly and take on too much risk, or you won’t know how much risk you can afford to take on at all.
Oversight #2: Trying to Take On Everything Yourself
Business owners who try to work only IN the business instead of ON it are setting themselves up for problems. Unfortunately, this is one trap that many end up falling into.
It’s common for owners to feel like they need to be in all of the minutiae of their business. When you realize that being a leader means trusting a team with your vision, you exponentially open up the path for growth. A team that has bought into your vision and mission and has the talent and understanding of the roadmap you set will take your business to new heights in ways you would never be able to accomplish on your own.
Oversight #3: Having Too Few (or the wrong) Advisors
When trying to grow, having the right advisors in your corner is essential. However, many business owners find themselves with too few advisors, which can lead to problems.
First, having the right advisor(s) can give you confidence and help you keep out of the weeds when business gets tough. If you’re in rough financial straits and you find yourself constantly putting out fires; casting a vision for future growth becomes difficult.
On top of financial wisdom, you need expertise in other areas like technology, creative design, social media, and the list goes on. In fact, the Bible directs us, “In an abundance of counselors, plans succeed.”
Where there is a limit to knowledge and ability, having advisors can be the key differentiator for you between success and failure!
Final Thoughts
Whether you are a business owner, plan to be one, or run a “side-hustle” and want to learn how to scale. When scaling a business, you will face issues on your left, your right, and your center with challenges you didn’t need foresee of did not even know to worry about.
That’s why having the right plan set in motion, the right team, and the right advisors will be the setup for your long-term win…in your business AND your personal stewardship!
