Common Mistakes Small Business Owners Make Growing Their Business. Entrepreneur MBA Podcast 3.17
Summary: In today’s podcast episode, Stephen Halasnik from Financing Solutions and his guest Brian Scudamore Founder of 1-800-Got-Junk discuss some of the top common mistakes that small-business owners make when growing their business.
Finding the Right People
One big, common mistake small-business owners make when growing their business is bringing the wrong people on board to start their business. For small businesses, the owner may start the hiring process just looking for extra help. Hiring and working with the wrong people can take the fun out of your job and can stop you from achieving your business goals. People who complain and are negative can challenge your whole team and your culture. If this is the case, then starting over with new faces can be a game-changer for growing the small business if you don’t make the same hiring mistakes again.
When making these hiring adjustments, one’s leadership must change to the next level to expand your small business into a bigger business. Once you have the right people around, they need to be developed and managed properly. When given proper training and guidelines, not only will the staff succeed, but now you will be on track for a faster-growing small business. You want people who believe in the same vision as yourself who share a common goal and culture.
Remote work has had some positive benefits for business as employees have been able to be more flexible with work. However, with being remote, people have not been able to connect and communicate in the same ways. Having that in-person connection is so important for growing your small business because it is not the same over a digital screen. Remote work has shown that we can get the work done relatively quickly and on time, but you might have to put plans in place to reinforce the culture you want.
Have a Clear Picture and Business Vision
Another common mistake that small-business owners make is not having a clear vision of where you want to go. Since the business is going to start small anyway, it is a good time to think about what you want the business to look like in the future. The owner and your staff need to imagine big goals and possibilities. At first, you do not need to know how you are going to get there, you just need to have a “painted picture” of it first and then you can work on getting there.
This picture can change over time and new visions can make the business grow even more than even you might have expected. Once you have these goals and visions, hiring someone to be your second in command can help you be successful in this vision while also allowing you to work on what you want to work on.
A tip for growing a small business is to find people who are happy, hungry, hardworking, and hands-on. These people will not only do the day-to-day work, but they will also take time to find new ways to make the business even better. Your staff should set goals for themselves and should like/love working for your company.
Set SMART Business goals! The five elements are specific, measurable, achievable, relevant, and time-based goals. Specific goals need to be focused, precise and detailed; however, it needs to be measurable too. Being able to figure out the exact numbers will help keep your business on track to completing these goals. Next, it needs to be attainable, do not aim too big, and make reasonable goals for your business. The goal also needs to be relevant and achievable based on the business. Finally, the goal needs to be time-based, without having a time frame attached to the goal it will be difficult to stay on track. Following the SMART elements, it will help break down your goal and make itGoal achievable so your business can be successful.
A common mistake that small-business owners make when trying to grow their business is not having the right systems in place for your business. If systems/processes are not in place then your staff is making it up as they go along. These systems will show exactly how things are done allowing you to scale your business.
Everyone will be trained the same way, and essentially when it is time to expand the business this will make the hiring process smoother. Without having systems in place, the employees can potentially all be doing their job differently. This can hurt the business because if someone is not doing it correctly it then falls back on others.
There are five reasons every business owner needs systems. The first is that they provide consistency, this will help the employees follow and do all tasks in the same manner. Next, change is fine. With systems in place, change will not be an issue and adjustments can be made easily. Third, training new employees is much easier. Having a system of procedures and expectations right from the beginning is essential. With systems in place, it allows for the employees to focus on what they do best.
Having your employees do what they are best at will help the business grow. This will also allow for better work and your employees will want to be there. Lastly, systems create value making your business sellable. These systems become a part of the business, and customers will be able to tell if the business is running smoothly.
Following these principles to reduce the common mistakes that business owners make when growing their business will help your small business grow. Figure out your strong points and get help from others to make your vision happen. Every entrepreneur will have systems that are different because no system will work the same for every business.
You need to have a clear vision, define your culture, find the right people, treat them right, and build best practice systems. Do this well and it will lead to a great company.
Guest Speaker: Brian Scudamore Founder 1-800-Got-Junk, O2E Brands, Wow One Day Painting, Shack Shine
Brian Scudamore is the founder of O2E Brands, 1-800-GOT-JUNK?, WOW 1 DAY PAINTING, and Shack Shine. Brian is also a regular contributor to Forbes, writing about small business ownership, franchising, and building corporate culture. His first book, WTF?! (Willing to Fail): How Failure Can Be Your Key to Success, was published in 2018 and is a best-selling business book.
About The Host Stephen Halasnik, Financing Solutions
Stephen Halasnik is the host of the popular, The Entrepreneur MBA Podcast. The Entrepreneur MBA podcast’s purpose is to help small businesses get over the $10 million per year in revenue mark. Mr. Halasnik is the Co-founder and Managing Partner of Financing Solutions. Financing Solutions is a leading provider of Lines of Credit to small businesses and nonprofits. A business credit lines with no personal guarantees required.
Mr. Halasnik is a graduate of Rutgers University and has an Executive Masters from the MIT Birthing of Giants Entrepreneurship program. Mr. Halasnik has started and built 6 companies over 25+ years with 2 of those businesses making the Inc 500/5000 fastest-growing list. Mr. Halasnik is a best-selling Amazon author on business and regularly tweets about his ideas about growing a business. You can also find Mr. Halasnik on youtube talking about Entrepreneurship.
Mr. Halasnik loves small business. He lives in New Jersey with his best friend, his wife Gina. Mr. Halasnik’s number one purpose is raising his two boys, Michael and Maxwell, to be good men.
About Financing Solutions Small Business Line of Credit
Financing Solutions small business financing product is a great alternative to a traditional bank line of credit because it costs nothing to set up, nothing until used, and when used, is inexpensive. The credit line requires no collateral and no personal guarantees.
Please feel free to fill out the no-obligation, 2-minute business line of credit application here. The time to set up a credit line is when you don’t need it so that it is ready to be used, just in case.
Note: Financing Solutions donates 10% of its profits to various nonprofit charities