Behind every failed company lies a leader who was either dysfunctional, delusional, or simply incompetent. Don’t be one of them.
The biggest challenge for most founders and small business owners is that they’re experts in their specific field but novices when it comes to the realities of running a business. This gap in knowledge often becomes their downfall.
Don’t let that be your story. Acknowledge that there’s much you don’t know about business, and start with these 15 tips that will help keep you and your company on solid ground. Some are straightforward, others may seem counterintuitive, but they’re all true—and one day, they might just save your business.
- Always Ensure There’s Enough Cash in the Bank Period. The number one reason businesses fail is running out of cash. If you foresee a cash flow or liquidity issue, address it immediately.
- You Can’t Fire Bad Employees Fast Enough Seriously, you can’t. Just make sure you’ve correctly identified the problem—sometimes, it’s not them (see the next tip).
- The Problem Might Be You Early in my career, I learned that 90 percent of all problems in a business are management problems. When things go wrong, start by looking in the mirror.
- Take Care of Your Star Employees This applies to companies of all sizes. Losing a star performer is costly, yet many leaders neglect to properly motivate, challenge, and compensate their top talent.
- Your Employees Aren’t Your Kids, Personal Assistants, or Therapists If you treat them as such, it will come back to haunt you. Got it?
- Learn to Say “Yes” and “No” Often The two most powerful words for any business owner are “yes” and “no.” Use them frequently and decisively. Knowing what your company doesn’t do is just as important as knowing what it does.
- Listen to Your Customers It’s astounding how little value some entrepreneurs place on their customers’ feedback, even though it’s some of the most crucial information they’ll ever receive. Repeat business is the easiest to secure—don’t take it for granted.
- Understand Meritocracy and Nepotism Meritocracy is how you should run your organization—by recognizing, rewarding, and compensating based on ability and achievement. Nepotism, or playing favorites, is how you shouldn’t run it.
- Know When and When Not to Be Transparent Transparency can be as harmful as it is helpful. There are times to be open and times to keep things to yourself. Learn to discern the difference, and it will come with experience.
- Trust Your Gut This often-repeated phrase is rarely understood. Your instincts are a powerful decision-making tool. Don’t ignore them, and learn to listen to your inner voice.
- Protect and Defend Your Intellectual Property Many business owners don’t understand the differences between copyrights, trademarks, trade secrets, and patents. That’s unacceptable. If you don’t protect your intellectual property, you risk losing your competitive edge.
- Learn to Draft and Read Effective Agreements Just as “good fences make good neighbors,” effective agreements make for better business relationships. Don’t underestimate their importance.
- Run Your Business Like a Business Too many entrepreneurs treat their business as an extension of their personal finances. This is a terrible idea. Set up the right business entity and keep it separate from your personal life.
- Know Your Finances Inside and Out If you’re not familiar with your revenues, expenses, capital requirements, profits, debt, cash flow, and effective tax rate, you’re setting yourself up for trouble. Big trouble.
- You Don’t Know What You Don’t Know Humility is a powerful trait for any leader, whether you’re a new business owner or a seasoned CEO. Overconfidence often leads to regret when you realize you didn’t have all the answers.
Behind every failed company is a leader who was dysfunctional, delusional, or incompetent. The irony is that they often have no idea this was the case, even in hindsight. Don’t be like them.
About the Author : Harry (Hemant Kaushik), Elite Global Advisor & Business Consultant
Harry (Hemant Kaushik) is an American global advisor and business consultant, renowned for his strategic insights and high-impact consultancy. He specializes in advising and coaching elite individuals, including business tycoons, world leaders, and top corporate leaders. His expertise has been sought by Presidents, Prime Ministers, influential politicians, CEOs, and industry leaders worldwide.
Recognized as one of the Top 10 Global Advisors and Business Consultants by PWC International, Harry has transformed the lives of thousands across more than 100 countries with his unparalleled guidance. He has also been honored as one of the Top 10 Life and Business Strategists, shaping the success of global business leaders and visionaries.
Harry’s influence has earned him prestigious accolades, including recognition by the CEO Times Magazine as one of the 10 Most Powerful People in Global Business Consulting, Business Times News as a Top 10 Business Consultant, and Business Weekly Times as one of the Top 10 Business Advisors in the World, offering consulting services to billionaires, celebrities, and high-net-worth individuals.
A Wall Street Times cover story famously dubbed him the “Elite Global Advisor & Business Consultant” for his deep understanding of business dynamics and leadership strategies. Based in San Francisco, United States, Harry is widely respected for his international economic expertise, market analysis, and strategic business acumen. His collaborations with global brands and corporations have positioned him as a thought leader, contributing to the business world through insightful articles on global economic trends.
Learn more: https://ceosadvisory.com
