A U.S. Bureau of Labor Statistics report revealed nearly half of all small businesses fail in the first four years of their existence. While there are many proven causes, including owner incompetence, inexperience, fraud and neglect, one killer culprit often flies under the radar: stagnation.
Losing momentum, with respect to revenues, market share and other mission-critical indicators, is one surefire sign that an entrepreneurial endeavor is in trouble. The good news is that a stagnated organization can take a number of proactive tactical measures—many fairly easily instituted—to turn the tide, spur change and kick the growth engine back into gear.
Following are eight strategies that entrepreneurs can employ to spark short-term progress, each of which also is highly effective in the framework of a long-term strategy for sustained growth.
1. Be a better bosspreneur.
An entrepreneur is defined as a person who takes a risk, such as starting a business or enterprise to make money. Bosspreneurs do the same, but also have written and quantifiable targets, goals and actions. Instead of just focusing on staff and other external variables, they focus on self-improvement and believe they can learn from anybody. Bosspreneurs accept responsibility, are open to change, want others to succeed and consistently break down barriers. Bosspreneurs do not just own a business; they own their behavior.
2. Promote ingenuity with immediate impacts.
Ask employees, customers, partners and vendors: What three things would you change right now that would impact the company this month or quarter? No group is too unimportant or insignificant to offer valuable advice, opinions and perspective.
Hold internal weekly brainstorming sessions with staffers for creating and collaborating on innovative ideas, such as streamlining processes for speed and efficiency. Create a task force to document, analyze, prioritize and take tactical action on ideas that will have an immediate impact on the business. Then, segue to the ideas with benefits that will be realized longer term. When things stabilize, continue to do this once a month or quarter, at the very least.
3. Be a stickler for staff accountability.
As a business owner, it’s important to continually challenge your team and hold them accountable for activities resulting in measurable growth. Once clear expectations have been set and training and coaching have been provided, step back and give staffers the autonomy needed to perform the clearly articulated duties expected of them.
Don’t micromanage, but require regular progress reports to allow you to recalibrate as needed and remain proactive rather than reactive. If performance does not improve, it’s time for an accountability conversation. Have this conversation sooner rather than later, as the longer it takes to expect improvement, the worse the situation will become for the team and the company.
4. Identify and resolve conflicts and unsavory politics.
Conflicts, whether among personnel, staff, vendors or the supply chain, can directly affect the company’s bottom line. Work to resolve those inevitable workplace conflicts so the company can come out even stronger on the other side.
Do not forget that everyone is watching what you, as a leader, will do or—just as importantly—not do. Taking a “wait and see” approach or hoping a situation will just pass is not a solution; rather, it is more likely to foster a toxic work environment, often perpetuated by low performers, which can cause high performers to seek employment elsewhere.
5. Play all positions.
Miami Heat coach Erik Spoelstra gave LeBron James the nickname of “1-through-5” for his ability to play and defend all five positions on the floor—an ability that earned James three NBA titles and four MVP awards. It is just as important for small business owners to be able to adjust and flex to their employees’ thinking styles to inspire an all-star performance from the team.
Small business owners should be able to be similarly named “1-through-4” based on the four critical thinking styles:
- the analyzer, who only seeks the facts without the emotion;
- the organizer, who is structured and detail- and procedures-oriented;
- the synthesizer, who is the big-picture person, imaginative and thinks holistically; and
- the harmonizer, who is always empathetic, emotional, expressive and seeking ways to help people to get along.
To get the best productivity and create high-performance teams and third-party relationships, leaders need to be able to play all four of these communicating positions based on how others naturally think.
6. Give praise and rewards, even during hard times.
When things are not going as well as expected, a leader going out of his way to recognize and reward even small successes can re-invigorate key players and the team at large, fostering a renewed fighting spirit. Rewards don’t have to cost money; they could be an extended lunch hour, thank-you email or word of encouragement.
Employees get nervous when things are tough, but increasing communication during those tough times can ease some of the tension. Always give credit where it’s due by creating a formal monthly honors or rewards program that recognizes employees company-wide for developing ideas and solutions that have a tangible beneficial impact on the bottom line.
7. Invest in top talent.
According to research compiled from 3,800 small business leaders and conducted by Salesforce.com, growing small businesses prioritize talent retention at a much higher rate than large enterprises. Business owners should surround themselves with the smartest and best talent possible to propel their company to the next level.
Invest the time to find those superstars, even in a part-time consultative or contract capacity if you can’t afford to hire them full time. The ideation, energy and optimism that comes from high-caliber staffers can be contagious and give the entire company a boost.
8. Pay it forward.
As the business owner, take an active role in the community through pro bono work on boards and committees. Such activities often proffer new networking opportunities, enhance the image of the company and its figurehead, and drive good publicity—all of which can reinvigorate revenues. By pulling away from the business and serving someone else, business owners can clear their minds. Giving always has a way of coming back to you.
If your company is stuck in a rut, don’t wait another day to change course with the hope that things will miraculously turn around without serious intervention. Take immediate action by implementing growth acceleration strategies to reinvigorate the business, strengthen the team and help ensure the company maintains forward momentum in 2017.
