Did you know that referring to your business as ‘my baby’ could cloud your judgment? Research shows that in a number of cases, passionate entrepreneurs can be blinded by their own enthusiasm.
When that happens, they may miss important opportunities to save their company from a bad stumble.
Like a mother hovering over a baby, an entrepreneur can fall into an “attachment” pitfall, experts say. When crucial decisions are clouded by a lack of clarity, opportunities to gain efficiencies are missed.
All of this is not to say that an entrepreneur’s passion about his or her business isn’t important to a company’s performance. But there also needs to be a balance. Here are four tips to help you ensure your business is on the right track:
- Identify low-hanging fruit in the form of tax incentives. Shift expenditures to reflect current operations at least twice a year. Ensure capital remains available for opportunities as well as debt reduction.
- Review how the company is performing each quarter. At least three different people who feel they are able to speak freely should review the firm’s progress and business plan at pre-set intervals twice a year.
- Conduct an annual audit to identify areas where waste could be trimmed. Respect the naysayers. They may have a valuable perspective and a sobering influence on top decision makers.
- Encourage the minority report. In some companies employees are reluctant to voice concerns or bring up problems. Make sure all of your employees feel as if they can speak up and be honest with you about the direction of your company. It could very well be vitally important to the future of your business.