It can happen when you leave a breakfast or seminar, read an article or are approached by a hotshot salesman - the discovery of “the one” solution that is going to lead you to your business success. My advice? Take a deep breath, then put that idea into your business strategy, where it can be implemented in the context of your whole business.
The damage inflicted on small businesses by snake-oil salesmen in advertising, media, search-engine optimisers, cookie-cutter consultants and other peddlers of anything that promises “instant success” can be serious, if not life-threatening. These products and services all have their place in a well thought out business strategy, but just focussing on one element presents dangers for small business.
One of the common actions is to take an expensive bet on marketing initiatives that will “turn the business around”. If you can’t afford to lose it, you can’t afford to spend it!
Many specialist consultants will have you believe that they have ‘the answer’ to your business success. Small businesses need great generalists that are very well connected.
In larger businesses, there are whole departments to manage supply, production, finance and HR – can be managed with the expertise already in place. Budgets are also bigger and finance easier to get. The cogs in the small business machine are heavily interdependent. If there are no plans in place to manage growth of all parts of the business, problems can arise. For example, if your marketing campaign suddenly boosts sales, can procurement, HR, production and distribution still cope? Will you have enough capital to fund that growth? How will cash flow hold up? Will you be able to find staff? Is your OH&S up to scratch? How well developed are our systems and procedures?
Not to mention, the business owner will generally have to manage it all.
Growth in a small business is fantastic. It is very rewarding and can give the owner more profits. Keep your eyes open through regular planning and review so you can make a rational assessment of those sharp salespeople that circulate amongst us.
Dr Warren Harmer, Director, Crecer
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