Despite the fact that economy is highly competitive and gradually failing, still thousands of new businesses step into the market across the globe. None of these businesses comes into the market with the objective of not growing or being kicked out of the market, however, the sad fact is that very few of the thousands of businesses survive the heat of market and make their way towards growth.
Blaming the bad economy and unfavorable market conditions is the one statement that all of the failing or failed businesses will have in common. The factor which most of the failed businesses would overlook is the similar mistakes they committed during their run. There is one big mistake addressed by most unsuccessful entrepreneurs, which most of the startup businesses commit. The lines below give that particular mistake and four steps that must be taken to avoid it.
The Mistake of Not Prioritizing
The biggest mistake that startup businesses make and which eventually leads to their failure is the lack of prioritizing or not prioritizing at all. Startup businesses are usually run by a single owner with a stringent budget and a handful of resources, thus management of all such constraints leads to losing focus of the true goal and the bigger picture. All the mismanagement leads to the unimportant tasks taking the place of important tasks, like at the time of sales business might be emphasizing on cutting cost, or when it might be the time of cutting costs, the business might have been making the expenditure. All this lack of prioritizing is the biggest mistake that the startup businesses commit which causes their eventual demise.
Avoiding The Mistake
If prioritizing was as easy as simply sitting down and doing it, there would be no need for all the debate and the businesses might not fail. Rather, it is a difficult thing to do and requires help from successful entrepreneurs to prioritize business goals and objectives. The lines below give the best ways of prioritizing to avoid startup business failure.
1. Identify Important Tasks:
The process of prioritizing starts with the identification of important tasks. The mistake committed by businesses is that they consider all the tasks of equal importance, thus give the same priority to all of them, without realizing the fact that some tasks might not be worthy of being important.
2. List Down The Most Important Tasks:
Once the important tasks have been identified, the next task for a business is to shortlist the Most Important tasks from the list. A business needs to shortlist the tasks on the basis of their importance in the coming month or quarter. For instance, in one month, marketing would be important for the business, thus it would rank high in the priority list compared to inventory management or auditing. Therefore, out of the important tasks, it is important to shortlist the most important ones.
Once the list of most important tasks is in front of the business, the next important thing it needs to do is to visualize the route it is going to take to complete those tasks. In exquisite terms, this visualization can be called ‘strategy formulation’. A business needs to have a clear vision of the paths it is going to adapt and the processes it will have to go through to complete the most important tasks with effectiveness and efficiency. This is the reason why most have detailed information on making a sound and effective strategy. Therefore, a business must take sufficient time formulating a strategy to complete the important tasks.
4. Take The Leap:
A pound of practical is important than a ton of theory. Therefore, once the business has formulated the strategy, it needs no longer fret on it and be skeptical, rather the business needs to take the leap and execute the strategy. Most of the businesses fail at this point because they become skeptical of their strategy and remain in a state of dilemma about the execution of the strategy. Thus, taking the leap business ensures that the strategy is put into action and with constant management; the business can ensure effective and efficient survival and growth.
Now it’s Your Turn!
Have you also been in a state where your startup business was on the verge of failure? What did you do to bring it back from that point? What is the most important reason for startup business failure to you? How do you prioritize your business tasks? Please leave your feedback in the comments section and I look forward to reading them!
Nate, I would add not giving up too soon! I had a situation earlier this year with a Google update that impacted traffic and sales dramatically for 5 months! I stuck with it, read up on it, implemented a few changes and our October was better than the previous year’s! It came back – of course the Hummingbird update helped too. Too many people give up on their way to success. They want everything NOW. Good things take time to happen.
Exactly, everyone wants it now. No one is willing to give themselves time to make it attainable. So, when they do not make it attainable, they start to lie to themselves that success isn’t for them or doesn’t work. Congrats on having a better month! Thanks Lisa!
Good post, and I would agree with Lisa to not give up! Review your results, be flexible, drop what’s not working, modify what’s marginal, double-down on what works… and have a good, healthy streak of stubbornness!
Love it Jon! Thanks buddy!
Nate, Definitely know your priorities and working on the right task in business is important. There are way to many distraction today with social media, networking events, etc. They sound important but how do they relate to a business’ bottom line.
I do find people who can do the steps that you mention who still fail because they don’t know what to prioritize and often spend time on the wrong thing. It seems obvious but generating leads and revenue should be the highest ones.
Thanks for sharing.
You’re welcome Heather! Thanks for the comments!
I think that the mistake that many new business owners make is being too diversified…they try to do too many things, such that it spoils focus and quality. Thanks for sharing!
Yes, Michelle. You are exactly right. They take on too much, they get overwhelmed and then they quit. Appreciate the comments!
Your right, focusing your efforts on the right things is important if the things you are doing in your business are not producing results for success then you may have an issue with your priorities. Thanks for the tips here!
You’re welcome Jason. Glad you got value. 🙂
Awesome value with the 4 biggest reasons why some entrepreneurs never succeed in their businesses, Nate! Thanks for sharing!!
You’re welcome Joan!
I think many people fail because they go in expecting microwave results and when they don’t get that in a couple of weeks, they start doubting themselves and their decision to join.
Exactly, I agree Judy!
Great value Nate… I don’t think people realize that they have to prioritize what they do in their business. Your tips are valuable..
Thanks Vince! Much appreciated!
Great post Nate! Love the format and how it is easy to follow and read! Thanks for the tips
Thank you for the kind words, Mike!
Not prioritizing is a big mistake that I personally find that I have to overcome if i want to succeed in my business. Love reading your post. Always left thinking hard about where I stand in my business.
Thank you Marielle!
I really felt this post LOL… I can definitely relate to all of this. I had no priorities because i was chasing every strategy and not going anywhere, and when I found a strategy to use I was skeptical that it would work.
This is what I was stagnant in a lot of cases! These tips right here are right on point. You have to prioritize, and if you don’t know what to prioritize, find someone that’s been there and done that to help you. This builds confidence as well as taking that leap of faith to execute the strategies you want.
Awesome! I’m glad this resonated with you Sherman!
You’ve proven there are quite a few steps that come before the leap. Many business owners take the leap prematurely. Thanks again for great content!
You’re welcome Pam!
Get down to IPA: Income Producing Activities. This is why I create 3 new blog posts daily; creating new posts puts dough in my pocket as my metrics improve and search engine positioning does as well.
Get down to the basics to rock it out. You covered em all here.
Thanks for sharing!
You’re welcome Ryan! Everyone needs to get down with IPA. Thanks buddy!
Very interesting. I thnk one of the biggest start up failures is getting into a business without finding out first what you are getting into to.
Thank you for sharing.
No problem Cindy!
I keep my priorities straight by keeping a list. If I don’t do that, I end up ‘tinkering’. I do my tasks in order of priority, THEN I play. If you want a successful business, you have to show up for the job and work. That’s all there is to it. Thanks, Nate.
Yes, love how you put that. You just have to ‘show’ up. ‘Show’ up and get ready to play bigger! Thanks Jeanne!
Not prioritizing is key but also just not doing the things that will most help your business be profitable is a mistake. I’ve been guilty of that myself, doing things that I want to do but fail to make me profitable.
In other words you might be doing something for your business that you like to do or that you think your business needs, but if it doesn’t contribute to the bottom line then you need to rethink it.
Important concepts for success 🙂
True. Not prioritizing is really not good that also affects your business. Thanks for sharing! Good help!
I’m pretty new to this but definitely feel it makes sense to prioritize as much as possible. I also think it makes sense for start ups to take a moment and reflect on their strategy and the best way to execute that strategy to optimal success.
Perfect timing Nate. I leave for India in a couple of days and when flying will have a lot of time to focus on and answer these questions. I have copied the url and look forward to exploring. Thanks!