About 20% of new businesses fail within the first two years of operation. Keeping a business running is hard work, and if you’re in charge, you’re responsible for that work!
There are many common errors in business management that can hinder your goals. We’re here to help you avoid them. Read on to learn more.
1. Not Setting Clear Goals
When you’re managing a business, you need to know what you’re working towards. Setting (and tracking, of course) business goals is essential.
We recommend SMART goals instead of basic goals. SMART goals are:
- Specific
- Measurable
- Achievable
- Relevant
- Time-bound
SMART goals are more productive and they’re easier to track.
Let’s say that your original goal was something like “Make more money this year.” That’s way too vague and it doesn’t give you any clear direction. Instead, you may want to try “Increase profits by 20% in Q3 of this year by adjusting our marketing strategy.”
You’ve given yourself an achievable percentage, a timeline, and a method of reaching the goal.
2. Poor Communication
Poor communication can destroy a workplace. Make sure your communication skills are top-notch when you reach a management position.
You need to be able to read non-verbal communication, like body language. You also need to be able to convey thoughts and ideas, even negative ones, in a productive manner to both employees and customers.
You should also encourage open and honest communication within your team in both one-on-one chats and regular staff meetings. This will foster a supportive environment. Clear and concise communication helps avoid misunderstandings and promotes collaboration.
3. Focusing on Employee Weaknesses
Too many managers and business owners focus more on employee weaknesses than strengths. They’re quick to criticize and punish, but slow to reward good behavior and offer praise.
You want to encourage your employees, not discourage them. By focusing on their strengths and allowing them to improve themselves via gentle feedback and training, you’ll be benefiting the entire workplace.
There are many great tools for improving employee performance, but punishment isn’t one of them.
4. Not Accepting Feedback
As a higher-up in your business, you need to understand how to accept feedback from customers and employees alike.
Your business may be your pride and joy, but it isn’t perfect. Excellent customer service requires listening to your customers and implementing useful critiques into your business management strategy.
If your employees have concerns, listen to them. They may have excellent ideas for improving the workplace.
5. Being Inflexible
Being a good manager requires flexibility. When something doesn’t go to plan, you need to be able to adjust and make quick changes without getting overly upset.
Flexibility will help you do that. When you’re mentally flexible, you’ll be better at “going with the flow.”
Avoid These Common Errors in Business Management
These errors in business management could spell doom for your business. Keep them in mind and make sure you’re doing your best to run your business! You have the potential to make your business great.
For more helpful articles about business and more, check out the rest of the site.
