Masonry Magazine December 2007 Page. 44
Business Building
By George Hedley
7 Steps to Business Failure
Everything is changing. The economy and markets change daily. As you get tossed about on this sea of constant change, most business fundamentals never change. Here are seven sure-fire ways to fail in business, no matter what else changes.
1. Do everything, everywhere, for everyone
No written plan - Companies that try to be everything for everyone are spread too thinly, move in too many directions, and are too busy. These companies are in the "Yes" business: "Yes, we can do that!" However, companies who have a clear picture of their projects, their customers, and their markets can succeed in any business environment.
2. Compete on price
"Nothing differentiates us"-Would you go to any doctor for heart surgery? Customers want to hire experts who specialize in specific types of projects or services. When you claim to be an expert in everything, you'll never get the job unless you are the lowest bidder. Customers pay more for experts. Why should your customers pay more for you? What do you offer beyond the minimum required per plans and specifications?
3. Hire cheap
"We can't find any good people"-It is tempting to hire cheaper people. But when you hire less experienced, less qualified, lower paid employees while your business is growing, you are kidding yourself. These people require more supervision, which takes you away from making your business successful. When you spend all your time monitoring junior people and helping them learn the business, you're not spending your time where the money is made: with customers, looking for opportunities, inspiring and motivating your crews, and on your bottom line. Better people require little or no supervision and will allow you to do more business and make more money.
4. Do it yourself
No written systems: "It's all in my head It is easier to do everything yourself than to try and get other people to do it for you. This control requires you to be everywhere to ensure everything is done perfectly. This also holds back your company and your people from reaching their maximum potential. Replace yourself with checklists and systems to improve productivity, so you can focus on your top business priorities.
5. Spend it all
Too busy to set financial goals - Most business owners don't sit down and write out their financial targets. More than 90 percent of all business owners reach age 65 with no net worth. This is a