No two small businesses are exactly alike, even if they share the same business model. There will always be small components of a company that makes them recognizable in their own way.
There are some things that all small businesses share, though. One is the desire to grow and survive. That’s why we hear the word “sustainability” tossed around in the business world.
Generating revenue can be difficult, but it’s not nearly as difficult as turning a steady profit. That’s why we’ve put together some five small business “don’ts” that you should remember while you aim for profitability and sustainability. Keep in mind that this looks different for every business and if you aren’t sure what success should look like, consider seeking out a small business coach to help.
Without further ado, here are five small business “don’ts” for company sustainability:
1. Don’t rush your growth unprepared
Most, if not all, companies have the goal to grow over time. Expansion is a great goal, but managing that growth well is crucial. Growing faster than your company can handle can easily leave you with a heavy financial burden that could mean your demise.
Remember—most small businesses fail not because nobody wants their product, but because they don’t know how to manage their cash flow. Carefully expanding whilst ensuring your cash flow can handle it is crucial for sustainability.
2. Don’t assume all employees should be perfect
You could have an incredible team of employees working to help grow your business, but never assume that they are perfect. Yes, they’ve committed to working with you, but they will have off-days too. Sometimes, mistakes do occur and as much as you want to minimize them, there is no such thing as a perfect employee.
Extending some empathy and understanding is important, but make sure you maintain a certain level of apprehension as well. Trust your employees, but not so much as to give away all your company secrets. Just like we said, nobody is perfect!
3. Don’t refuse to adapt to new practices
Old habits tend to die hard. Yet, new information is presented to us every single day. Just a few years ago, many of us believed that open office settings promoted workplace productivity. Today, just as many (if not more) disagree, citing that open offices are detrimental to collaboration, rather than promoting of it.
Saying that your business does something a certain way just because “it’s always been like this” is no longer an acceptable reason. Information has never been more accessible. Do your research to find out the latest and best practices, applying them to your small business. This will allow you to maximize your workplace efficiency while ensuring that everyone is happy to work for you.
4. Don’t always assume the best-case scenario
Just because you are up and running in a professional environment does not mean that you should believe everything is going well. For instance, when working with accountants, do not assume that they are doing everything right. Small blunders on financial statements have caused plenty of trouble for many businesses.
Always double-check (even triple-check) everything about your business. Remember, you built this business, and no one’s going to care about it as much as you do.
5. Don’t hire close friends or family members
Hiring friends or family might seem like a good idea at first. While there have been family or friend business success stories, there have been just as many nightmares. Running a business is stressful and without conflict resolution skills, it’s easy for your working relationship to affect your personal relationship. To avoid conflicts between your staff members, it’s best to avoid hiring close friends or family members.
When working with your small business, always keep these “Don’ts” in mind. They are just a few of the many mistakes that have been the downfalls of other small businesses around you. Learning from their mistakes can help you guide your business down the right path to success. Consider getting in touch with professional business coaches in your area to learn more!
Need an experienced business advisor in Perth to guide the growth of your small business? We can help you position your business for sustainability! Ask us how.