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