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When Your Business Has Warts
Read the blog post here:
http://bit.ly/StuckStruggling5
(a business ends up with “warts” when it grows by accretion – that is, a process of bolting on additions and diversifying until focus is lost and the structure is unwieldy)
5 Pieces of Practical Advice for Dealing With Business Warts
Prune Annually
Adding on happens. Sometimes the addition or change is for the best. But
assume that regular streamlining will be needed to keep the company focused.
No vineyard prospers without regular pruning
Get Objective Assessments
We get too close to our own companies, and never want to call our baby ugly. Find dispassionate advisors
who can help gain a 20/20 vision of what’s working – and what’s not.
You can’t read the label of the jar you’re in
Ask “Why?”
Why did we originally start doing this - and is that reason still valid? Why would we want to add this – does it fit into our
long-term strategic vision?
Not all business opportunities are good business opportunities
Respect Your Limited Capacity
Leadership energy and bandwidth is consumed by every bit of “overhead” in company structure. Juggle as few balls
as possible so that success is more certain.
Nobody wins a marathon wearing a backpack
Ask What Is Making Money
Some ideas bewitch us, they seem so fabulous. We pour in resources and
effort – yet, at some point, we have to step back and ask the revenue/cash
flow/profit question. And answer it with a clear Yes or No.
Beating your head against the wall even harder rarely produces the desired result
