Blue Elevator Blog

The Best Business Blunders

At Blue Elevator ™, we haven’t seen it all – but we have seen a lot.  Based upon observations over the past quarter of a century, here’s a list of where typical businesses come up short.

To that end, Blue Elevator ™ is pleased to publish the “Best Business Blunders.”  Needless to say, this list is a recap of what NOT to do.

1. The list isn’t in any sort of order.
2. There isn’t one mistake that is any more critical than the others.
3. This list is tactical.

The list does not discuss the “soft skills” needed by CEOs and owners: leadership, the ability to communicate, working well with people, transparency, resilience, etc.  These qualities, together with the need to assemble a talented and competent team, are very necessary.  In this article, however, we are focusing in on the fundamental X’s and O’s necessary to run a successful business.

Throwing the provocative title aside, this is a list of mistakes you DON’T want to make in your business.  With no further adieu, here we go:

The Best Business Blunders – the list

1. Best Business Blunders #1.  Forgetting about “why” you are in business.  Your business must successfully synthesize “what” you do, “how” you do it, and “why” you do it.  You aren’t in business to make money.  You HAVE to make money to stay in business.  You aren’t on this earth to breathe.  You HAVE to breathe to stay alive.  Make sense?  You and your prospects have to know the “why” of your business.  You are on this planet for a purpose.  Find out what it is and do it to the best of your ability.  You need to have passion for your purpose.  Hear Steve Jobs on this very point.  When business owners forget “why” they exist, they are adrift on a sea to nowhere.
2. Best Business Blunders #2.  Not creating a clear “Deliverable.”  You could say that a good Deliverable is your “unique value proposition,” but it is much more.  A Deliverable is something that the market needs.  It is something you can be the best at.  It must be marketed at a price the market will accept.  It must also be sold at a price where you can be profitable.  Additionally, the Deliverable must be scalable.  A cogent Deliverable will satisfy each and every condition listed above.
3. Best Business Blunders #3.  Failing to create an exit strategy.  The majority of business owners have started a business that is just a job.  This is a far cry from the ideal.  According to Michael Gerber, the goal of having a business is to have freedom and to sell it one day.  I venture to say that too many business owners work for their business rather than having a business that works for them.  It is important that business owners work on their business to make it scalable.
4. Best Business Blunders #4.  Failing to create a “timed” exit strategy.  Not having a timed exit strategy means it is relegated to one of the many things that you will get around to one day.  The problem is, one day is always in the future and one day never arrives.  A definitive (but alterable) plan, together with time frames, will help you determine if you are on track.
5. Best Business Blunders #5.  Not having a clear, definitive brand.  Remember what we went over in item #1?  Very few business owners have a “brand” or “identity” that synthesizes the why, what, and how of their business.  Your brand isn’t just your logo – it is your essence.  Life comes at you fast.  Sometimes you have but a few seconds to make an impression on your customers.  Make sure your brand is easily recognized and represents the very essence of what you bring to the marketplace.
6. Best Business Blunders #6.  Hiring people to solve problems.  People don’t resolve problems – they exacerbate them.  Huh?  Shouldn’t you hire good people?  Well, yes – hire the best people possible.  But, before you hire someone, solve the problem first.  Your business should be a composite of defined processes that are carried out by people.  Think strategy, objectives, processes, then people.  Your business will reveal the types of people you will need to carry out your game plan.  Design your business processes, then hire your people.
7. Best Business Blunders #7.  Failing to engage in “Web Centric” lead generation, marketing, prospecting, etc.  All of your lead generation efforts must drive people to your website.  Period.  Failing to drive traffic to your website kills your advertising dollar.  Sending people to your website stretches your advertising dollar.
8. Best Business Blunders #8.  Failing to have a “Lead Nurturing” website.  Not only should your marketing drive people to your website, but your website must be able to “nurture” potential customers.  You must be relational.  Too many business owners make their website an online “catalog.”  Your website should really be a central hub for coordinating all of your business activities.  Your website should provide valuable content.  Your website should be able to request and accept emails from potential customers.  It should be able to segregate this activity into accessible databases.  It should engage and nurture your customers.
9. Best Business Blunders #9.  Not establishing a “lead staging” program.  We have mentioned the importance of being web centric and having a lead nurturing website.  You must also be intentional about identifying the means and methods of engaging with potential customers.  Whether it is working “tailing piles” or identifying compound lead sources, you have to be able to engage a multitude of prospects.  Translation: You have to be able to place your Deliverable in front of a lot of people.
10. Best Business Blunders #10.  Advertising for your competition.  When you talk about your competition, here’s what you are really saying: “I don’t really have a Deliverable (e.g., unique value proposition), but here’s how I compare to the most popular brand.”  It is also akin to saying, “Whenever you think of my business, don’t think about chocolate.”  No matter what, people are going to think about chocolate.  Stop advertising for your competition.
11. Best Business Blunders #11.  Using “low price” as your Deliverable or unique value proposition.  We can all think of brands that differentiate based upon price.  We have all heard this line: “When it comes to XYZ service, we are the cheapest in the marketplace.”  The problem with advertising that you are the cheapest in the marketplace is that, well, you are the cheapest in the marketplace.  Customers are looking for value – not “cheap.”  The problem with advertising a low price is that, to move the needle, you have to continually lower your price.  A “low price” brand strategy is a death spiral.  Get out before it’s too late.
12. Best Business Blunders #12.  Driving with no hands.  It’s fun to try and drive a bike or a car with no hands – for a while.  It is a rather short-lived exercise because you eventually run into something.  Nevertheless, a lot of business owners are trying to drive their business with no hands.  They start a business, start working in their business, and then take a “back seat” role.  You have to work “on” your business – not just “in” it.  You have to keep your hands on the wheel at all times.  Owning and operating a business is like driving a car.  Businesses on “auto-pilot” eventually end up in the ditch.  You can read more in the article titled, Taking Inventory.
13. Best Business Blunders #13.  Failing to engage in social media (and failing to engage in social media).  Today’s consumers are engaging in different ways.  Social media is a must when it comes to engagement.  We see two errors here.  The first is failing to establish avenues across appropriate social media channels.  Twitter, Facebook, Google+, LinkedIn, Instagram, etc. are all possible venues.  Where are your potential customers likely to be?  That’s where you go.  That’s where you setup a “store front.”  Keep this in mind.  Once you have established your social media presence, it is important to know that the word is “engagement.”  The second error is failing to engage on the social media platforms you have established.  Social media engagement can be even more important than SEO.  You can read more about this here: Social Media – Use it or Lose it!
14. Best Business Blunders #14.  Failing to keep and ‘close’ the books.  Accounting is the language of business.  Sorry, but it is.  The problem is, most entrepreneurs hate accounting; it is the bane of their existence.  Consequently, the accounting either doesn’t get done monthly, properly, or doesn’t get done at all.  How your business is doing will reflect in your numbers.  When your books are done monthly (and accurately), you will be more equipped to make the necessary adjustments to safely and competitively drive your business.  Programs like Quickbooks help place you in control.  The thing is, you have to do the accounting (or have it done for you).  Running your business without complete, timely, and accurate accounting is like flying a jet airline without any instrument gauges (in the fog).  You get the point.
15. Best Business Blunderss #15.  Outsourcing.  Most people outsource something that they don’t want to do or something they don’t know how to do.  You should never outsource something that you haven’t taken the time to understand.  The Army instructs its soldiers how to disassemble and re-assemble their rifles in the field and under stressful situations.  Their lives may depend upon it.  How can you outsource something you don’t understand?  If you do this, you will not know whether you are getting a good value.  It’s OK to outsource something.  But first, make sure you understand what you are outsourcing and how to measure success.
16. Best Business Blunders #16.  Failing to work with a trusted advisor.  No one can objectively see themselves.  The best investment you can make is to find and engage a highly-skilled and trusted advisor.  Even experienced fighter pilots rely on a wing-man.  A skilled and trusted advisor can help you see what you can’t.  No one can see 360 degrees.  You need an advisor to help identify strategic opportunities and to help implement cutting-edge business processes.  Don’t make the mistake of offering up objections to this important exercise.  Note the two criteria: highly skilled and trusted.  A lot of owners get this half-right.  You have to find someone who is both.

Well, that wasn’t so bad, was it?  The reality is this: You need to avoid all of the preceding mistakes.  If you think you might be a little off the mark, it’s important to make the correction.

At Blue Elevator ™, it is our pleasure to help business owners get their “business to the next level™.”  For many business owners, we are their highly-skilled and trusted advisor.  If you have any questions about any of the concepts in this article or if you are someone that is ready to go to work, we invite you to Contact Us!