By Yinka Kolawole, with agency report
THE objective of starting a business is to see it grow over time and eventually reap the fruits, by earning returns. However, some obstacles may stand on the way to success by interfering with the growth of the business.
Most businesses are involved in multiple verticals and sometimes business owners and management may fail to keep an eye on some areas. This is where loopholes build within their business conduct, disrupt the normal functioning and eventually hinder success and growth.
Also, the absence of some controls and procedures may leave gaps in the business which may impede its development. Every entrepreneur should be aware of some of these inadequacies in order to understand how they can affect business and how to avoid them.
Ineffective employee performance appraisal
In addition to customers, employees are one of the most important people in your business. They provide labour and are the face of your business. However, lack of proper tracking and measurement tool for their performance may lead to unnecessary absenteeism from work and laziness, leading to low productivity. Every payment to an employee should match their productivity and therefore, it is vital to have an efficient and accurate method of determining the two.
Inappropriate employee vetting and training
When there is a vacant position in your business, you should aim at hiring the best. After advertising the position, you will receive many applications. There may be falsified documents among the applicants. Therefore, apart from just relying on the information given by the applicants, it is better if you contact the indicated referees to get clarifications from them. Also, confirm if the academic credentials presented are genuine and if they match the requirements of the vacant position.
After hiring, ensure that the employees are well trained and conversant with what is expected from them. Failure to hire the right people may lead to high employee turnover, which costs a lot to the business and hence low productivity.
Ineffective customer feedback channel
It is important to know what your customers are saying about your brand, employees and the business itself. Customer satisfaction is the cornerstone of business and it should be the determinant of its direction. It is important to avoid relying on employees entirely to update you on customer feedback.
Mostly, employees will not disclose the negative feedback about them from the customers. Therefore, it is important to come up with a way in which clients can contact you directly.
Efficient channel of communication
Besides, you can pay them random visits. Failure to have a proper and efficient channel of communication between you and your customers will make you lose your way to success.
Improper employee communication channel
Employees are imperative in business. It is vital to get frequent updates from them regarding the firm. Since you cannot know about everything that is happening around, they are your eyes in your absence.
Sometimes they may observe something crucial to your business such as fraud, complaints, customer feedback, among others, but they may fail to inform you if there is no proper way of communication.
Lack of internal controls
Lack of proper internal controls in a business makes it easy for crimes such as fraud, theft, and hacking of critical information to be executed. Safeguard your assets and information, by restricting access only to authorised persons.
Undertaking too many tasks by yourself
Some business owners will tend to want to take total control over the entire organisation. However, this may be detrimental to the business as you expand boundaries.
To succeed as a business owner, you must be ready to delegate some tasks to qualified professionals. As a business grows, some once simple tasks may seem to have a significant drag on the business’ momentum.
Delegating such time-consuming and taxing tasks will give you and your employees the time needed to concentrate on other priority issues.
As a smart business owner, it would be a big mistake to underestimate the competition. Competitors have high chances of ruining your business. Instead, always strive to understand the strategies that your competitors are using to approach the market.
When you do business, make sure that you appreciate your competitors and apply strategies to counter their moves. While competition is healthy for any business, it may also bring an end to any business. Always ensure that you are in front of the competition at all times. Do not underestimate competition even if you seem to have been on the top for too long.
Lack of mentorship
For a business to be successful, it needs the advice of an experienced mentor. Mentorship is valuable as it brings to your business wisdom and experience in the market and its trends.
If you wish to achieve success in business, ensure that you have a competent person on your team who will help the business to make diligent decisions for your business. The importance of good choices and perfect timing to execute strategies cannot be ignored.
If you are running a business, then you want it to be successful. Making a business successful takes commitment, dedication and a lot of discipline. However, there are some areas which are easy to miss and may lead to the end of your business.
To increase your chances of success, make sure you look at the aforementioned business loopholes and devise proper strategies to sail through them.
- Culled from Entrepreneurship.com