Is Your Business Losing Money Because You don’t Have the Right Tools?
YOU ARE FIRED! John yelled at me as I was laying on the ground after falling off the roof of the house. John was mad because his saw horses had been broken in half because of my stupidity. I was stunned and just wondering if I had broken anything in my body as a result of the fall. It was the final straw… John who was in charge of the construction site, went to Louis the company owner, to ask that I be fired for incompetence again…. Luckily for me, Louis had a soft spot for my ineptitude, and suggested that John give me a different tool to work with, (a broom) and keep me away from activities and roofs that might injure me, and cause John more stress!
In many cases, we have the right people doing the wrong job. Because I was a hard worker and was willing to do jobs that others, like John the carpenter wouldn’t do, I was considered by the owner to be a good employee. However because I didn’t have the right skills or tools to be on the roof, I was seen by John to be a liability. The same might be happening in your business. You might have the right people but in the wrong positions.
A while back I facilitated a webinar for a National business association where I asked two questions of the business owners who were participating.
- Why did you get into business?
- A) Because of the money? Or
- B) because you were passionate about it?
- Is your business making enough money? Yes or No
Some people assume that business owners are just focused on money. However, 70 % of the business owners on the webinar responded that they got into business because they were passionate about what they were doing! While only 30% said that they got into business for the money!
The majority of the hundreds of business owners I’ve worked with, have started, or bought their business because of passion. They loved what they were doing, and thought that they could make a business of it. They wanted to make a difference in the lives of their customers, and they loved the interactions that the business provided. In many cases they were the right person doing the right job and in many cases they had the tools to run their businesses.
Is Your Business Making Enough money? 81% of the respondents said “No the business wasn’t making the money that it should be”. I wasn’t surprised at this result!
My experience of working with business owners over the years has shown me that while some business owners are really doing well with their businesses, many are struggling. Perhaps you might not recognize it, because the cars are leased, and you don’t see the monthly bank payments or statements, or experience the sleepless nights. However owning a business can be very very difficult at times, especially in these times of high inflation, and turbulent change.
So what is the problem? Why aren’t businesses making enough money to provide for the owner’s needs? It’s not that business owners are not putting in the time or the energy to make the business work, they are. Many business owners I know are working 50-60 or more hours per week. But the reality is if you don’t have the right tools, you are going to have to put in the extra hours to build the dream.
If I am building a house and am using a handsaw instead of an electric skill saw, or a screwdriver instead of a handheld powered drill, it’s going to take me a lot longer to get the job finished. If I have helpers that fall off the roof instead of contributing by driving nails, the house will take longer to build. If I don’t have a set of plans to guide me in where to put the foundation, or no one has taught me how to frame the walls, things will be out of kilter!
The same applies to your business. Without the right tools, people and plans, your business is going to suffer. Chances are you are going to have to work harder, longer and it’s going to cost you more, affecting your bottom line. Of course 81% of the business owners I asked were struggling, it’s because they didn’t have the right tools!
In some cases owners and managers of companies don’t really understand how their business makes money and what to do if they are bleeding cash. They may not have the internal tools or capacity to deal with staff shortages, HR issues, or onboarding. In some organizations, they might not have the right technology, or resources to support their business initiatives. In a recent business I was working with they didn’t even have the basic tools for pricing their products and services or understanding their financial situation. This is an extreme example of a people working without tools.
Without the right tools we can’t build a house, without the right people doing the right jobs with competency, things are going to get broken. This week think about what tools you need to build your dream business.
Dave Fuller MBA, Is an Award Winning Certified Professional Business Coach helps entrepreneurs grow, train and sell their businesses. Need some business tools? email email@example.com
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