8 Unexpected Lessons You Learn in Business
Rafael Magaña
Senior Director Of Development - Corporate Partnerships, Major Gifts, & Planned Giving
Starting a business is an exciting venture, a new chapter of life that brings unexpected lessons. You can learn something new and unexpected at any point. As your company evolves, so do its needs, goals, and challenges. Here are a few key lessons that can help you prepare for the trials ahead and improve your efficiency as a business leader.
1.Planning and Execution Are Not the Same
No matter how perfect the business plan, expect the execution to look very different from the blueprint. It is likely you will run into several roadblocks that you failed to prepare for. Markets change, demand for your product or service fluctuates and when you least expect it, a global pandemic changes the way you do business.
Plans can also include marketing campaigns that are received badly by the public, or exceed planned business expenditure, and so on.
The best way to prepare for the unexpected is to keep an open mind and be ready to improvise when the need arises. The most successful companies are those that are able to adjust to change. Be willing to let go of ideas you hold near and dear to embrace new strategies that work best.
2. Problems Cost Money
Unfortunately, one thing you may quickly realize in business is that problems cost a lot of money. Whether it is hiring additional employees or updating technology, you should be ready to invest your new profits to fix problems arising in your business.
3. Employees Know More Than You Do
Even if you are involved in the day-to-day running of the company, it is impossible to know everything about every aspect of the business. This is why it is important to communicate regularly with your employees.
Create channels through which employees can leave feedback or pitch ideas both directly to you and anonymously. Make time to find out what it is like to work for you. You can learn a great deal from workers on every level. Consider each opinion carefully and find cost-effective ways to solve every problem, regardless of how small or big it is.
4. Keep The Gatekeeper in Check
Managers and supervisors may be allies to the CEO, but they are often enemies to employees who work under them. Many abuse their authority, stifling the ideas of their assistants or even passing them off as their own.
It is, therefore, a good idea to create a channel employees can use to report their managers. You can also hold a quarterly performance review based on feedback from lower-level workers to adequately assess the management style of supervisors.
Again, do not dismiss feedback. If a manager is reported for bad behavior, make sure to investigate the claims. When workers are abused by supervisors, they may badmouth the company or pursue legal action.
5. Customers Are Not the Only Ones Who Leave Reviews
In recent years, there has been an increase in online platforms that allow employees to review your company and share its secrets. Media companies are interviewing workers from across industries to get the "inside scoop" of how businesses function and the public finds the revelations eye-opening.
If, for instance, an employee lets slip that your company fails to meet certain regulations, your business may be boycotted. You may lose a considerable amount of profit or customers in a matter of days.
The lesson here is not just to follow industry rules but to also treat your employees well. Your company's reviews are not just written by your customers, but by your workers too.
6. Pay for Extra Work
If you add responsibilities to a worker's job description, their check should reflect it. Many companies try to cut costs by piling on extra work onto employees until they burn out. This practice not only makes staff less productive, but also breeds resentment towards the company.
When workers feel overworked and underpaid, over time, it changes the customer's experience. Resentful employees tend to sabotage the company. This might not seem like a problem if you are still making a profit, but it is when you compare it to the revenue you would have made if workers were happy (think opportunity cost).
7. Try to Stay Good
When you are desperate to cut costs, people can get very creative... and not always in a good way. Hiring interns instead of employees, diluting their product, or short-changing service to customers are just examples of practices that are very tempting to businesses.
If you choose to engage in unethical practices, you should also expect adverse consequences. You may not get into trouble immediately or even in the near future, but the day of reckoning always comes.
Many companies are being ordered to shell out millions by the courts each year for offenses ranging from sexual harassment to product copyright issues. Staying ethical might not seem profitable in the short term, but it might just be the reason why your business stays open when others shut down.
8. Stay Connected to Related Industries
The death of cassette tapes saw the end of cassette players. A gradual shift to a paperless society has caused a decline in printers, rising oil prices has changed how delivery businesses operate, and so on. The life of your product or service is, to some extent, dependent on the longevity of another industry.
Make a habit of checking up on companies and industries that affect your own. While some changes are slow-coming, others are sudden and may affect demand for what you do. Stay updated on these industry shifts.
Owning and running a business comes with plenty of curveballs. If you want to stay afloat, it is worth taking time to adopt practices that will ensure longevity. Being open to surprises, valuing feedback from employees, and staying updated about related industries are just some of the ways your company can survive the unexpected.
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Copyright March 12, 2022 by Rafael Magaña. Contact for usage license.
Rafael Magaña helps organizations grow. Helps leaders accelerate strategy implementation in their organizations. Specializes in donor-centered Philanthropy. Major Gift & Planned Giving Officer - Veritus Scholar. Rafael is a Board of Trustees at the Hollywood Schoolhouse, Development Chair, and has been a member of the Board of Directors with the Navy League of the United States, BHC since 2006. Enjoys writing about leadership, management and careers. Founder of Latino Professionals, Latina Professionals, & Latinx Professionals. He resides in California.
Disclaimer: Opinions expressed are solely my own.
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Attorney | Lifelong Learner | Founding Board Member, Latina Professionals
2yVery insightful article! Tip #4 hits the nail on the head.
Corporate Retirement Director & Financial Advisor at Morgan Stanley | Nonprofit Board Director | Ultramarathoner
2yAnother great share! Thank you sir!
Founder & CEO Accountable Impact
2yGreat article Rafael Magaña some lessons & tips are also applicable to nonprofits.
⭐️Executive Coach Helping You Revitalize Your Career Joy & Land C-Level Positions ⭐️Public Speaker ⭐️ Career Transition ⭐️ Leadership Development ⭐️ Interview Coaching ⭐️ Personal Branding
2yThese are great tips for every business owner.
Senior Vice President | Family Wealth Advisor | Corporate Retirement Director | Executive Financial Services Director | Alternative Investments Director at Morgan Stanley
2yGreat article Rafael! Especially the advice on the distinction between planning and execution!