CEO CORE Series: Common Mistake to Avoid as You Increase Income and Profits

October 5, 20180 Comments

Do you remember what we used to say as kids, “step on a crack, and break your mamas’ back!”?  Well, now that we are all grown up, the old adage still rings true – to an extent.   As adults in the business world, we are discovering that actually stepping on your business cracks without repairing them can really break its back.

As your business venture grows in income, and profits, so does challenges, problems, and operational mishaps (errors). The most common mistake at this stage is ignoring the challenges, problems, and operational mishaps (CPO) from the “source;” instead we put band-aids on and continue to celebrate the increased income and profits.  Basically, we see cracks and we immediately go into solution mode to fix the cracks. However, fixing the cracks without identifying the cause of the cracks can lead to major issues.

Are there cracks in your business?  Not just your foundation, but in other areas, as well?

Business cracks mostly come from errors.  Errors come from a lack of knowledge, a lack of resources, and a lack of cash.  In all honesty, errors can result from a variety of things.

The mistake happens when we quick fix the cracks.  Quick fixes happen when we fail to determine the true cause of the crack (error, problem, challenge).  It all boils down to re-learning the simple equation of cause and effect related to your business.

We spend expensive time fixating on the error rather than eliminating the cause of the error; as a result, the business begins spiraling to failure.

Try to imagine it this way.  Imagine your business is the earth and you are out in space orbiting your “business earth,” looking for rough areas, soft areas and smooth areas.  The smooth areas are good to go but the rough and soft areas need work.  Taking a birds-eye view of your business is only the first step, but taking the “business earth” view of your business is operating your business on a strategic level.

For example, a rough area indicates a bumpy path or a bumpy area of your Small Business System.™  Maybe the way you’re managing your daily administrative tasks takes up all your time and you never get a chance to actually do what you planned to do on any given day.  You answer phone calls, you check emails, you create your to do lists, and so on.  All these administrative tasks are getting done but they are the only things getting done.  The marketing, selling, planning, managing and other strategic work is being pushed to the side.  As a result, goals are not being met, existing customers are not being serviced, new customers are not being acquired, important deadlines are being pushed back, and before you know it, it is the end of the year and your cash flow is still in the red.

This is a business crack that needs fixing.  Do not begin repairing this crack by changing your hours or turning off your email; begin repairing the crack by determining the root cause of the crack.

Attack the cause first – not the effect of the cause.

CEO Action: Identify and Repair Your Business Cracks

Begin repairing the cause of your business cracks with these four steps:   

  1. Determine if it is the rough areas that need to be worked on first or if it is the soft areas that are ready to cave in and that need immediate attention.  How do you know which cracks need your immediate attention?  It is based on your culture and strategic goals.  Are you meeting your own expectations?  Are your strategic goals set and are you on track to meet them?  Only you can decide what needs immediate attention first; think long-term versus short-term fixes.
  2. Begin breaking down the soft and rough areas within the key functions of your business and rank accordingly, based on what you need to work on first.  Compare these to the goals you have already set; are you doing what you say you are going to do or do you keep doing the same things over and over again and getting less than stellar results?  Are YOU the main cause of the cracks in your business?
  3. Make a list of your top five business cracks and prioritize them.  Take your list and put your business cracks in order of importance and emergency.  There may be some cracks that need fixing in order for you to stay in business!  Put those at the top of your list.
  4. Take on each crack one at a time.  Determine the cause of these cracks and create a strategy to alleviate them.  This will take a little time but not too much.  The best way to do this is to list out the action steps that need to happen to fix the cause of the cracks – put them in order and determine a schedule of completion.

Stop quick fixing your business cracks and start with correcting the root cause of the error.  Your business backbone will thank you with consistent cash flow and profits!

Remember, business cracks can break you business’ back!

I would like to hear how it’s going, keep me updated by commenting below!

Your Transmogrifyer

Sherese Duncan

p.s.  Remember, your overriding CORE objective is to Focus, Fully Engage and Finish!

How are you going to commit to this month’s action step?  Share in the comments

________

How would you like to begin engagement?

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About the Author ()

Duncan has owned and operated Efficio, Inc., a business education company for over 20 years. As the visionary leader of Efficio, Inc., Duncan is spearheading a global initiative to help entrepreneurs build successful business enterprises. In addition, over the last seven years, Duncan’s expertise extends to seven additional viable businesses including dimage, an image consulting firm, Efficio Radio Network, a small business talk Internet Radio Station, Efficio's Business Institute, an online school for entrepreneurial credentials, Tactical Growth, a strategic marketing firm for small business owners and For Educators, an organization dedicated to serving higher education institutions with entrepreneurial curriculum, marketing support and program development.

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