Are You a Victim of Your Own Success?
Here are the Show Notes from the Episode:
**keep in mind that show notes are raw and only highlight what is in the episode. Listen to the show for the full content**
Episode 15 of the Local Small Business Coach
Episode 15 LSBC – Is Your Local Small Business Failing Due to Your Success?
Are You a Victim of Your Own Success
Welcome back to the Local Small Business Coach Podcast, I am your coach Tammy Adams. Here is where we discuss your local small business and how to increase your profits, boost your sales, improve your processes and develop stronger teams.
How’s your day going? This has been a crazy week. I’ve had a lot going on in both of my businesses and have had some long days. I’m sure some of you can relate to this types of days where you are running your business from early in the morning until very late at night.
But hey, it has to be done sometimes. Things happen, business takes off and you work your tail off to keep it all running smoothly on the outside even when on the inside you don’t know how on earth you are going to do.
The problem is, when you start stacking days and days like this on top of each other, you start to get severally drained and things start slipping through the cracks.
I know for me, yesterday was one of those days. I got to the end of the day and realized how many people I still had either promised something to or still needed to call. So even though mentally I was ready to call it a day, I had to shelve that need and just plow through to live up to my commitments and promises. Worse yet, this doesn’t even include all the people that called with new business or needs.
Can you relate?
At the end of the day, as I reflected on the craziness, I realized that as much as this sucks, it really is a good thing. Business is good and lots of opportunities are happening.
Then I knew exactly what our topic today was going be. Here in episode 15 we were going discuss – Are You a Victim of Your Own Success?
You always hear how 90% of small businesses are out of business within 5 years. Half don’t make it the first year. Usually when you hear these statistic people are talking about all the things folks did wrong. People assume that the businesses were run poorly.
The reality is, there are quite a few local small businesses that actually crashed and burned due to their success!
Sounds weird and counter intuitive doesn’t it? One normally doesn’t equate success with failure.
Unfortunately, it is more common than you think. You might be one of these businesses with a successful business that is about to crash and burn.
So how on earth does this even happen? Those of you in this situation want to know how to not become a statistic and those of you just starting or doing well, want to know how not to wake up and find yourself in this position at all.
Let’s take a look at 4 of the big reasons why this even happens.
Before we discuss these 4 items, what put someone in this position in the first place.
A local small business is started. It does ok and slowly starts to build some momentum. The business owner provides great service, does quality work, is on time and over time, word of mouth kicks in and the business grows.
Here is where the wheels start to fall off. Let’s talk about those 4 items I mentioned.
1st thing that tends to happen is the small business starts to take on too much business without the resources needed
Let’s say the business owner can comfortably handle 14 jobs a week. Since business is booming and the phone calls are coming in, the business owner takes on 20 jobs. Working from early morning to late at night, he or she is able to knock them out.
While the business owner is excited by the sales and profits coming in, Deep down, they know that they are in over their head. They need help. They know they shouldn’t take on these extra jobs but since the money is good, they keep going.
They know they probably need help or they need to change their processes to keep up. The problem is, they are so darn busy, they never have time to work on either of these. Who has time to hire when they are working from 6am until 9 – 10 at night?
So they keep plugging away knowing they will address is soon as they can.
Then our #2 reason starts to creep in.
The business owner doesn’t have the time as I mentioned to put the processes in place to keep up with the business but they also don’t have the time to do the existing processes they currently have. A great example of this is, they are too busy to follow up on getting paid
Crazy huh? They get so busy they don’t have time to write up the invoices, never mind to follow up on folks paying them.
If the owner ever took the time to dive in, they would discover that they are now losing money month after month due to high out go over costs and expenses, and a lack of sales coming in to pay for those items.
Soon one more thing starts to creep in and this brings us to Item #3.
Now that the small business owner is running around like a chicken with their head cut off, they start to cut corners. Those extra steps to ensure the little details got done, start to get missed. The business owner starts to cut jobs short due to having to be at the next job site.
If it is a brick and mortar, maybe the normally cleaned lobby starts to not be cleaned (don’t even get me going on this one). Maybe the products are put together sloppily due to how busy it is?
Whatever your business, the key in this step is, the Quality of the work continues to go downhill.
This all leads to our final item – the ultimate Loss of business
Think about it, work of mouth about your service and quality got you the success, it is ironic that these same items will eventually destroy your company.
You might recall, we have discussed that for every positive, glowing recommendation you get, there are more folks that will take every opportunity bash you and your business. Especially with the ease of social media today.
Before you know it, business starts to die off. The problem is, it happens so fast that you might not recognize that it was your success that did you in.
You were doing so well, that you couldn’t keep up and everything that got you there, were the same things that took you down.
So here is the challenge I want to throw you. Think about your business today?
Are you on the path to failure due to your success?
If your business is cranking and you are working your tail off and having those long days we discussed at the top of the podcast, is this a freak week or is this happening more and more? Are you finding you just can’t keep up with all the business you have going on?
If so, you must slow down your business. I know the money is good, but you are playing a risky game. You are gambling with your future.
Some folks would say to raise your prices. That will make up the money and slow down some of the business. So it ends up a wash. This might be right for you and your business.
Take the time to put the people and processes in place to grow at the right pace. I’m not talking months and months, I’m talking about taking a step back and making sure you are not sacrificing your time to work ON your business since you are so lost IN your business.
Trust me, you will get those sales back, but this time, not at the cost of your service or quality.
You want steady and consistent growth that you can keep up.
Look in the mirror, are you on a dangerous path? Or are you doing it the right way?
I don’t want to see any of you crash and burn. Don’t let the money lure you in, don’t get caught in the “high” of the sales coming in.
When I look at my own business, I know that I have watch this next year. I have a successful business going and I am working hard on developing this new business with you. My passion for helping local small business owners has the potential over take all of my time that I’m not working on my other business. I would never see it, since I love doing this.
I know that I want to create a great podcast. I know that I want to create great tools for you and your business. I also know I want to start coaching as well. This could continue to take off and knowing me, I’ll just work longer and longer to keep up and keep growing this.
That balance can get off and something will have to give. First my health and then parts of my business. I’m just like you. I have to make sure that my businesses do not cause me to be a victim of my own success.
So let’s both commit right here, right now that we will not let this happen.
That we will not be a statistic 3-5 years from now. You in?
So with that, let’s wrap this up. Keep providing great service and quality. But please, have a plan for your growth. Grow at a pace you can handle and make sure to put the people and processes in place that you need. I promise that I will, so let’s do this together.
So until next time, remember, if you like what we are taking about, then make sure to subscribe to the podcast so you don’t miss an episode, if you love the podcast and what we are talking about, then please leave a 5 star review so other local small business owners know this is a podcast that they can’t miss.
Also don’t forget to visit the website at LocalSmallBusinessCoach.com to leave your question for me to possibly answer on the podcast in the future. You can leave it via the Speakpipe button or just shoot me an email. See you on our next episode…Bye for now…..
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Episode Show Notes: Episode 15 – Local Small Business Coach Podcast
Our Training Materials for Local Small Business Owners: TrainingforLocalSmallBusinessOwners.com
Starting a Local Small Business Website: StartALocalSmallBusiness.com
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