6 Mistaken Assumptions a Business Owner Can Make
Although you’ll find a lot of junk on the social media websites, you can also mine some gems if you’re following the more substantive discussions. I came across one of these in one of the groups I participate in on LinkedIn.
The posted discussion question was, “What are the worst assumptions any leader can make about his/her business (in light of the current economy)?” Following is a sampling of responses Coach Up Visitors should find useful.
Mistaken Assumption #1. There’s no need to change. They can just wait until the economy “gets better.”
Shaky economy or not, business owners who resist making adjustments to their operation when conditions warrant will be overtaken by the competitors who do. But waiting for external conditions to get better before you take steps to improve your bottom line is letting everyone else run your business.
Mistaken Assumption #2. What worked today (or yesterday) will work tomorrow. Also, doing things the same old way you’ve always done them will create different results.
This assumption is a variation of number 1 above. Let’s put a professional development spin on this one. Small business owners are typically so involved with “running their business” they often neglect their personal development. The knowledge and skills that supported them to this point may no longer be effectual for the next 3 to 5 years. Younger business owners more comfortable with the newer technologies, just for one illustration, can take market share from those relying on “how I’ve always done thing.” Do you expect your doctor and accountant to stay current in their fields? Well . . . .
Mistaken Assumption #3. This, too, shall pass…. so I can stick my head in the sand, do nothing different, and try to shrink my business to success.
OK, try applying that strategy to the nutritional needs of your children or pets. Enough said.
Mistaken Assumption #4. [They think] that they know everything already.
I’ve met many very knowledgeable business people over the years. The really smart ones are always—ALWAYS—looking for more and better information, whether it’s market data, process improvement, communication skills, selling skills, management styles, you name it. When I’m training a group of very experienced professionals, I always offer this disclaimer, “There’s a lot of knowledge and experience in this room. Take advantage of it. Learn from each other. I promise you that you will come away with at least two good new ideas.” No one has ever asked for a refund.
Mistaken Assumption #5. Although it’s not really an assumption but more of a business mindset, if you were to ask 100 business managers or owners what the purpose of any business is, probably 99 would say “to make money”. While that’s a worthwhile and, usually, necessary goal, the purpose of any business is to “get and keep customers”. The most successful businesses and entrepreneurs are those who find ways to get new customers, thru innovative products or services. You cannot make money without a customer. The mistake is focusing altogether on the bottom line and not on the customer.
This statement doesn’t require much amplification. I have opened many training programs with a question aimed at getting to this precise point: “What is the purpose of your business?” Eventually, we reach the conclusion above. Your purpose is to create satisfied customers—an ongoing stream of them. Do that, and the money will follow.
Mistaken Assumption #6 . . . . what drives the leader drives the people!!
This mistaken assumption needs to be avoided by corporate managers as well as business owners. People are motivated to do things for their own reasons, not yours. So it is imperative for anyone with employees or direct reports to discover what motivates them. Then connect those individual motivations to your business goals. If people can see that they can achieve their goals by helping you achieve yours, they take ownership of their jobs and worker harder and smarter.
Clearly this is not an exhaustive list. Let’s hear from you on this question: What are the worst assumptions a business owner or corporate manager can make? Post your commnt below.
