| Owners and executives must be leaders | | | | priorities and provide sales forecasting |
| first and managers second. As leaders | | | | data. |
| our task is first andforemost to be | | | | 4) Management in the Place of Leadership |
| about doing the right things, and the | | | | So why is leadership so important in |
| "seven deadly sins," should be on the | | | | growing a business? Because leadership |
| top ofyour list as leadership issues you | | | | is about doing the rightthings, |
| are dealing with on a regular basis. | | | | management is about doing things right . |
| Building a small business isone of the | | | | In many ways, it is leadership that will |
| most rewarding, but risky ventures one | | | | grow yourbusiness from a sales and a |
| could possibly venture into. Most papers | | | | stability perspective, and management |
| on smallbusiness deal primarily with | | | | that will make, or keep itprofitable. |
| financing and risk management, which are | | | | Also, consider that the best companies |
| only symptoms of the realissues. Your | | | | focus ninety percent of their attention |
| bank account is just the scorecard of | | | | onexternal issues, not internally , |
| how well you have developed your | | | | leadership is primarily a focus on the |
| leadershipskills relative to | | | | external issues. |
| accomplishing the "right things." | | | | 5) Poor or non-existent Systems |
| This paper will help you avoid many of | | | | Most people think of computer systems |
| the costly pitfalls of operating a small | | | | when they hear the word "system." But in |
| business, assumingyou heed the advice. | | | | the since it is usedhere it means all |
| Avoiding these pitfalls will in turn | | | | systems, including the system you use |
| help you to conserve cash, develop | | | | for selecting the right employee, |
| marketshare, increase sales, improve | | | | fordecision making within a department |
| customer loyalty, increase employee | | | | and so on. One of the more telling |
| retention and build efficienciesinto | | | | statistics in this area isthe fact that |
| your operation. | | | | ninety-four percent of all task or |
| The "seven deadly sins" include 1) Poor | | | | project failures are system failures2. |
| or non-existent business planning; 2) | | | | Some of themore common reasons for |
| Lack of a strategicobjective; 3) Lack of | | | | system failure include: |
| marketing strategies and tactics; 4) | | | | - Islands of automation verses |
| Management in the place of leadership; | | | | integrated systems |
| 5) | | | | - Absent or non-existent policies, |
| Poor or non-existent systems; 6) Failure | | | | procedures and user manuals |
| to utilize an appropriate leadership | | | | - Poor training. |
| style; 7) Care andfeeding of sacred | | | | 6) Lack of Development of Leadership |
| cows. Business owners and executives who | | | | Style |
| do not understand them, do not | | | | Developing leadership ability has a lot |
| haveexperience with them and therefore | | | | to do with understanding the type of |
| do not appreciate their impact and | | | | leadership required atdifferent stages |
| significance often ignorethese critical | | | | of your company's development. There are |
| leadership issues. | | | | at least six different leadership |
| Thirty-five years of building and | | | | stylesidentified to be effective at |
| operating small businesses has taught me | | | | different stages of a company's |
| that most small businessproblems are not | | | | development including; Visionary; |
| money problems at all, and in fact money | | | | Coaching; Affiliative; Democratic; |
| is just an indicator that much | | | | Pacesetting; and Commanding . |
| deeperissues are at play. Beware; the | | | | Understanding which leadershipstyle to |
| market is a wicked taskmaster, these | | | | employ has been found to significantly |
| "seven deadly sins" are likesmall doses | | | | increase the effectiveness, growth and |
| of poison injected into your operation | | | | heath of thecompanies in which leaders |
| by the very marketplace you are trying | | | | utilized multiple styles. Just as |
| toconquer, and they provide a slow | | | | important is the understanding of whata |
| painful death to the naive. | | | | leaders personal profile is. Armed with |
| Here are the "seven deadly sins" in | | | | these vital bits of information a leader |
| order of priority. | | | | is equipped topursue the right |
| 1) Poor Business Planning | | | | leadership style for the task at hand. |
| Most small businesses do not have even a | | | | 7) Care and Feeding of Sacred Cows |
| summary business plan, and of those that | | | | I do not have a statistic on the amount |
| do, many arecookie cutter business plans | | | | of money, time and energy expended on |
| built with the help of a piece of | | | | the sacred cowslurking in American |
| software. At a minimum a businessplan | | | | businesses, but it has to be staggering. |
| should have an executive summary; a | | | | This list details some of the types |
| company overview with company history | | | | ofsacred cows you can look for in your |
| and it's currentstatus; the companies | | | | business. |
| strategic objective; a description of | | | | - The way we have always done it |
| the companies products and services; | | | | - The product or service you keep |
| alist of the companies intellectual | | | | pouring money into because you just know |
| properties including patents, | | | | it will take offand be your future, |
| copyrights, trademarks, processesand | | | | (these are almost never accompanied by |
| know-how; a market analysis; a | | | | market research or even a |
| competitive analysis, which includes | | | | promotionalplan) |
| competitors and their marketposition, | | | | - Resistance to growth through change |
| and their strengths and weaknesses; a | | | | - Idleness within the ranks, some |
| marketing plan, which includes your | | | | experts believe ten percent of the |
| marketingstrategy, product strategy, | | | | poorest performing peopleshould be let |
| sales strategy, and pricing strategy; | | | | go each year to make room for people |
| your customer service plan; | | | | with fresh insights and ideas |
| salesprojections by product, in units, | | | | - The company airplane, automobiles, and |
| for at least three years; and finally a | | | | other perks, which drain company |
| set of financials whichinclude projected | | | | recourses |
| income and balance sheets with a | | | | - The dead weight relatives and friends |
| Performa sales forecast. | | | | of the family who would be better off |
| Here are some other important | | | | elsewhere, actas distractions, and add |
| suggestions and facts related to | | | | nothing to your bottom line |
| business planning: | | | | - The "expert" that no one can live |
| - Less than a third of small business | | | | with, who holds a noose around the |
| startups have a business plan | | | | companies neck in theform of some |
| - A business plan does not have to be | | | | expertise or an unwritten code of |
| incredibly detailed for operational | | | | loyalty. |
| purposes | | | | You could call this business "101," |
| - It should be a work in progress | | | | however, most of the issues developed in |
| updated on a periodic basis | | | | this paper are rarelytaught in schools, |
| - Particular attention should be paid to | | | | much less heeded. These "seven deadly |
| the marketing plan | | | | sins" can impede your company's ability |
| - A business plan is part of the first | | | | tosuccessfully navigate through the |
| fifteen percent of the business | | | | turbulent waters of business |
| development processwhich will assure the | | | | development. If you do not understandall |
| last eight-five percent will go smoothly | | | | the issues summarized in this paper, do |
| - The executive summary should be | | | | the research; find a business advisor to |
| written last, after the rest of the plan | | | | help younavigate these storms , you owe |
| is in view. | | | | it to yourself, your business and the |
| 2) Lack of Strategic Objectives | | | | people who count on you. |
| A business strategy is made up of | | | | Conquering the devil in the details is |
| carefully crafted words making up | | | | what management is about, concurring the |
| templates, which in turn act asfilters | | | | "seven deadly sinsof small business" is |
| through which all planning, tactics and | | | | what leadership is all about. The beauty |
| decisions are passed through before | | | | of developing top-level leadershipskills |
| implementation. | | | | is that there is no downside, only |
| A strategic objective is therefore, a | | | | opportunity for growth in both your |
| business strategy developed to guide an | | | | business and yourpersonal development. |
| organization inmeeting business | | | | Leadership is what the entrepreneurial |
| objectives. A strategic objective is | | | | spirit is all about. |
| developed from the owner's vision, | | | | Develop your business plan, establish |
| passion,core competencies and values for | | | | strategic objectives, establish |
| the business. Contact Emerald Business | | | | marketing strategies andtactics, lead, |
| Services or go to ourwebsite for a | | | | build effective systems, utilize more |
| worksheet you can use to develop these | | | | than one leadership style and kill the |
| critical business development tools. | | | | sacredcows in your business, it might be |
| 3) Lack of Marketing Strategies and | | | | the only thing that keeps you and your |
| Tactics | | | | company from becominganother dreadful |
| Marketing strategies govern the | | | | statistic. |
| development of tactics, which in turn | | | | 1. article "Most Entrepreneurs Start |
| provide the actions itemscontained | | | | with . . . No Business Plan" |
| within your planning process. The most | | | | 2. Demming |
| important aspect of your marketing plan | | | | 3. Peter Drucker |
| is thedevelopment of promotion | | | | 4. Allan Weiss |
| strategies and tactics, which feed your | | | | 5. Goleman |
| promotion planning and provide youwith | | | | 6. Keeping everything the same and |
| sales forecasting data. The promotion | | | | expecting things to change is at least |
| plan should also detail costs and | | | | one definition of insanity |
| anticipated unit volumeso you can set | | | | 7. |