Want to know the reasons why a company may disappear? Then Arturo Andrade, successful entrepreneurs Coach lists four risks where salons, restaurants or any other business tend to disappear.
Risk No. 1
The first step to fall into the Bermuda Triangle is to carry out ideas without faith, undertake initiatives which are devoid of love and passion. Have you ever wondered how many times people start a business with a big question, instead of starting it with a great certainty? How many times do people undertake a business simply because someone else made it work? Indeed, how many times people start a business just because it seemed like a good idea? Surely these cases appear familiar to you.
And usually, people do not mind that a business is not to their liking or you have never felt a real passion for it, they simply start to start something up. If this is your situation, you should take precautions because this is the first place where businesses disappear.
Risk No. 2
In this step there is often a gap between the business idea and execution as such. It is common for people who start a business to have plans to perform certain activities, but it can happen that during development, these ideas do not materialize according to plan.
And if the execution of the business is done differently than what you had in mind from the beginning, the gap will become increasingly wider and will end up being a mix of everything but what you had planned, on this gap many businesses may disappear.
Risk No. 3
The third step is the administration, if you get to this point it means that the business is over the first part of fertilization, because firstly, it was a well-set idea, it was a business with love and passion, secondly, it was observed that the gap between what was said it would do and what was done was minimal or none at all, and well executed, so at least it already has operational success.
But then, we find this third step is where entrepreneurs, salon owners want to be investing in larger, nicer rooms in technical training: training courses in the United States, Europe , Canada and well they almost want to take one on the Moon! Already on high-tech classrooms, new furniture, the most motivated team there is, the most exclusive products, with a lot of operating growth, but here entrepreneurs will realize that administrative growth is zero. The management team, administrative ideas, administrative staff, administrative initiatives are no longer the size of the operation!
Ah, but then, business owners they manage and strive to be cloned in order to cover all positions, because as operators they are good or excellent makeup artists and big sellers, that means they can also be good managers! But the worst is that they want to continue with that cheap accountant that handled the business when they were alone and do not realize that now THEY ARE NOT ALONE, they’re in another company with various complexities, different costs, another tax scheme and a different administrative situation.
This big mistake is where companies collapse due to not giving the importance that is due to the processes, methods, people, the ADMINISTRATIVE DIRECTION...
Risk No. 4
If the above steps were a success, then why companies disappear when you are given the proper attention and why collapse when the investment already made , why they disappear when given proper weight to the administrative part?
Because there is a spot where you have not looked, which is in INNOVATION. Most salon owners decide to reinvent their classrooms when they are already obsolete, brands want to reinvent when they don’t sell and this is where the ability of business owners must come afloat, it must reinvent itself and stop doing things the way it has been doing them.
If you are a business owner what do you expect? Leave the comfort zone you have already mastered, take your own initiative and begin to reinvent yourself! Do not reinvent because the market requires it, or because technology demands it, reinvent yourself because your business needs it.
As a business director, I recommend you think about this last point seriously because the lack of innovation may be a cancer for businesses in the future that will get to kill a foolish and self-absorbed businessman who refuses to change the way you pay, contract, work, grow and invest. So do not be afraid to innovate because otherwise your business may end up disappearing in the mysterious Bermuda Triangle.
It’s not all just wishful thinking but it’s a start.
Think nice wishes.
Written by Arturo Andrade