Over the last 18+ years, I have seen many businesses fail and succeed. The one factor that determines success or failure in business is growth. Yet bizarrely, when a business owner wants to grow their business and is working toward that, the business does not grow at all – but the business owner will tell you he or she is very busy. You might ask why this is the case.
There are some mistakes business owners unknowingly make that do not lead to growth. If they are not careful, these mistakes can be repeated and have a compounding effect that leads the business to one of three outcomes:
1) A roller coaster of ups and downs
2) A treadmill where the business does the same thing over and over again, and
3) Quiet desperation where there is a loss of passion and confidence, paralysis on what to do, and a standstill for the business.
These outcomes, if not changed immediately, will stall growth and eventually lead to failure. That’s why I am not surprised that 50% of businesses fail in 5 years according to U.S. Census Data.
I am going to share three mistakes people make that kill business growth:
Mistake # 1: “I don’t need to worry about my business growing, because we are busy.”
A business owner’s belief in being busy will not lead to growth in their business. There is nothing wrong having a calendar filled with activities throughout the day like meetings, lunches with colleagues, taking buyers out or filling out paperwork and coordinating transactions to close. But if you’re scheduling these events at the expense of time in your calendar for focusing on growth and generating new business, you’re in for trouble.
Mistake # 2: Not knowing what specifically your business does to bring in business
Many business owners apply the method that looks like this: let’s throw a bunch of stuff against the wall and see what sticks. Very few business owners can tell you specifically what they do to generate new business confidently.
Recently in January 2016, The Network, (YPN) with HRRA had three local REALTORS ®, Celia Romaine, Dayla Brooks, and Jeremy Stansbury who are members, speak about “Lead Generation How-to.”
From what I observed and heard, each of these panelists had specific activities that generate business. Here are some ways real estate agents generate new clients:
1) Calling on FSBOs or Expired Listings,
2) Farming a neighborhood,
3) Purchasing/Working real estate leads, and
4) Developing and cultivating a sphere of influence for referrals.
As a business owner, you must also know what strategies and tactics work to generate ongoing business.
Mistake # 3: Not measuring, analyzing and evaluating what is working in the business.
Many business owners do not measure, analyze, and evaluate what is working in their business. The ones that do are very successful increasing their revenues at least 20 to 50% every year. This is because they can determine objectively and logically, not emotionally, what is working or not working in their business. They then make adjustments accordingly. These business owners review their expenses, activities to generate new business, and processes for sales, customer service, and hiring and retaining staff.
These are some common mistakes that I have seen when Tanyag & Company works with business owners, but there are probably many more. Once these mistakes are identified and corrected, the business can grow and is less likely to fail. I hope the information presented in this article helps you achieve successful business growth in 2016, resulting in more income and more time to create and live your ideal lifestyle.
If you need help in growing your business, click this link now: Contact Us
This article was posted in the Hampton Roads Realtors Association’s Magazine in March 2016 on page 26. Here is a link to the actual article: http://www.hrra.com/_docs/realtor/magazine/2016/mar2016.pdf