Do You Deal with Reality in Your Small Business?

Let’s face it—entrepreneurs are often fueled by passion, ambition, and enough caffeine to power a small village. But sometimes, that fiery enthusiasm blinds us to reality. I’ve seen business plans so out of touch, I wanted to ask, “What color is the sky in your world?”

You’d think this kind of blissful ignorance would mostly plague startups. Nope. Even seasoned small business owners can drift into an alternate universe—not from passion this time, but from good ol’ ego. After all, if you’ve been around the block and survived, surely you’re invincible, right? Spoiler alert: You’re not.

Believing in your business is essential. But believing only in your business, without a clear-eyed understanding of your market, your competition, or your flaws? That’s a recipe for disaster. So, are you dealing with reality? Let’s find out with a little mirror therapy and a few tough questions.

Do You Have No “Ugly Children”?

Be honest: Do you think your business has zero weaknesses and your product is flawless? Newsflash: no company or product is perfect—and trying to make them so isn’t just unrealistic, it’s expensive. Believing in your team is great. Believing they’re all rock stars without flaws? That’s delusional. Similarly, thinking your product is a slam-dunk without any shortcomings is just setting yourself up for a hard sell later.

Do You Know Your Competition—or Just Think You’re Better?

Are you really informed about your competitors, or do you just assume you’re the best? Do you know who they are, what they do better than you, and what you can learn from them? If not, you might be flying blind—and in business, that’s not a great survival strategy.

Is Your Glass “Overflowing”?

Optimism is great. But if your glass is perpetually overflowing, you might be drowning in denial. Do you over-promise and under-deliver? Set employees and suppliers up for failure with unrealistic expectations? If you’re always disappointed, maybe the problem isn’t them—it’s you.

Do You Trust the People Around You?

And by trust, I mean really trust. Do your employees and advisors tell you the hard truths, or are they just nodding along to keep the peace? If everyone’s drinking the “We’re crushing it!” Kool-Aid, it might be time to detox.

Do You Listen to Your Customers?

When was the last time you asked your customers how you’re doing? (Shout out to the late Ed Koch for that classic question.) Are you paying attention to their requests for improvements, or do you assume you know what they need better than they do? Customer loyalty isn’t a “set it and forget it” deal—it takes ongoing effort to keep them happy.

Operating in reality is the secret sauce of entrepreneurial success. Passion and ego are fine in moderation, but they can’t replace cold, hard facts. So ask yourself: Are you keeping it real in your business?

“The Entrepreneur’s Yoda” has been there, done that, and got the (possibly overpriced) startup T-shirt. May success—and reality—be with you!