Building, maintaining and growing a successful business is tough. There is always a new problem to be fixed, a technology to employ or a position to fill. The truth is, running a fruitful business, and being a productive owner or executive of that business, doesn’t come down to one single variable- there are many factors that go into your overall prosperity.
According to the Scaling Up Performance Platform business acumen, there are four key areas to focus on, called the Four Decisions Framework: People, Strategy, Execution and Cash. These decisions encompass the majority of mistakes you and your company could be making, which are inhibiting you from reaching your fullest potential.
Mistake Number One: You repel the best candidates, and struggle to keep the good employees you have.
In order for any business to be successful, you have to have the right people steering the ship: from the captain to the deck crew. This involves not only your hiring process, but making your business a good place to work. A place the best people are encouraged to stay. If you find that your company struggles to attract, hire and retain the best talent, you could be falling into this mistake.
Mistake Number Two: You have the same strategy from year to year.
No business, or person for that matter, ever became great by doing the same things they’ve always done. It is imperative to diversify and differentiate your strategy every single year if you want your business to grow and thrive. Your customer needs, marketplace and competition are constantly changing, so are the elements within your own company. So it only makes sense that if your internal and external factors are in a constant state of change, having a dynamic strategy process is essential.
Mistake Number Three: You make dynamic plans, but fail to execute them.
You can write your stellar ideas down on paper, have dozens of well-intentioned planning meetings and even lay out a strategy, but until you actually fully execute your plans, they will never realize their fullest potential. Connecting strategic plans to execution discipline is a common place that companies stumble.
Mistake Number Four: You maintain or even decrease the amount of cash flowing into your business.
The object of running a business isn’t to maintain the status quo, let alone to lose money. Your goal should be to devise how to increase your flow of cash on a steady basis. Since growth absorbs cash, and you need a steady flow of oxygen (cash) into the system to fuel profitable growth and liquidity.
Whether you are making one, or all of these mistakes, it is vital to assess your business practices and make the necessary changes. Getting to the bottom of these decisions is the first step towards driving your business towards growth, prosperity and freedom for you and your employees.