5 THINGS THAT WILL SINK YOUR SERVICE-BASED BUSINESS
Many smart, talented service-based professionals with an excellent value offering never leave the launching pad or the success they desire in their business and it has nothing to do with what service they offer to the public. And, while there are many factors to avoid, here are 5 things I urge clients to be mindful of as they forge ahead in their business.
- Not Knowing The Numbers, Poor Bookkeeping/Accounting - I have found many people who do not have accounting experience or finance experience shudder at the idea of looking at the numbers. It often starts when we first realize we are not hitting our numbers or get behind in our tasks that we let this one slip. Or we know our revenue is not matching our expenses. We start avoiding the pain associated with looking at the numbers. The problem with that is, it's like the lurking monster that you put into the dark corner, you could avoid it, but it's there. You don't have to be a CPA or have a degree in accounting, but you need to understand the fundamentals of financial statements: Balance sheet; Income statement; Profit & Loss Statement, etc. You also owe it to yourself to understand how to create and maintain an operating budget and different categories of revenue and expenses.
- Failing To Expand Skillset - Now this one goes out to people who have been in business for a long time want to rely upon the skillset that brought them to where they are to advance them further. This will not work. The world is moving at such a fast pace and if you're not keeping up, you're out of date. If you find yourself reminiscing about how things “used to be”, I understand and can relate. Hopefully, you are going to live a long prosperous life, so embrace the change, expand your skills and avoid functionally obsolescence.
- Trying To Please Everyone - We all want to be liked. And most of us hate conflict. The concept of “Living in peace and harmony” can be viewed as a noble pursuit or foolish notion. Well, this is tough to admit, being a recovering people pleaser and all, but the older I get and dare I say seasoned emotional maturity, I am FINALLY coming to realize that I do want or need to please everyone. After 2 decades as a self-employed entrepreneur and professional, I have the battle scars to prove that trying to please everyone is not what’s cracked up to be and it will be a recipe for burn-out, frustration, and disappointment.
- Failing To Delegate - It's your responsibility as a business owner to know your strengths and weaknesses. I find a lot of people wasting time trying to build up the areas where they are weak. You don't have time for it. Lean into your strengths and delegate everything else as much as possible. This delegation process cannot be done in a vacuum; however, you still must know what is going on and recognize the ultimate responsibility falls on the business owner, but it’s totally the right move to bring people onto your team who could do that task better than you ever could.
- Not Being Open To Objective Critique – All right, this is where your ego is telling you to stop reading… but don’t listen. Read on. And, I will add this qualifier: Everything I’ve written about in this article is something we all experience at one point or another and at varying degrees of frequency. But what I have found when I asked for help or talked it out with a trusted advisor, coach, or mentor, I’ve always left the conversation better than when I started. Your business is your baby, you know it better than anyone, you’ve put the hours in and have homed in your zone of genius. No Doubt About It. However, giving yourself the opportunity to gain the wisdom and insight from someone who has an outside perspective will uncover possible blind spots that you’ve failed to see or possibly avoided. What I often suggest to clients is to start by doing an updated S.W.O.T. analysis to get a fresh perspective on your status. It is an excellent launching point for a more meaningful conversation with a trusted advisor, mentor, or coach.
If you are a service-based professional or entrepreneur currently struggling to overcome one of these situations, I offer a free coaching session that will help overcome these challenges, eliminate frustration, reduce anxiety and GROW your business in a way that is aligned with your highest value and purpose.
I invite you to reach out to me for a conversation. Have a great day!
Former Founder, President, and CEO of American PetroLog, LLC. Currently engaged in real estate investments, entertainment production, and nonprofit management focused on charitable causes.
2y100% True!