Connect with us

Business Survival

5 Reasons Heartbreak Is Good for Entrepreneurs

Like business failures, however, there is a great deal to be learned from them. Here are five reasons to get over the fear of both.

Peter Gasca

Published

on

Butterfly-burnt_heart-break

Tis better to have loved and lost than to never have loved at all.

Those are the words of Alfred Lord Tennyson, who first penned the phrase in the mid 1800s. While he may not have intended them to apply to business, experienced entrepreneurs know that there is a great deal of validation in his words.

Related: 4 Ways for Entrepreneurs to Inspire Confidence Even When Talking About Failure

That’s because while starting a business is challenging and frustrating in itself, more so is the pain and heartbreak when you realise it is time to close and let it go. Much like a first love, your first business is something you will pour yourself into, heart and soul, so the idea of it coming to an end is enough to break anyone emotionally.

Heartbreak, however, either in love or in business, can be a good thing.

If you are an entrepreneur who is facing the agonising realisation that your business is failing, or you are holding back from starting a business for fear of failure, then here are a few reasons you should face the potential heartbreak with more confidence.

1. You will survive

Most would-be entrepreneurs are terrified of failure, envisioning a failed business as an albatross they carry for life. The truth is, regardless of how grand your business may fail, debts can be negotiated, employees will find new jobs and broken business relationships can be healed with honest transparency.

Remember, if you don’t let it kill you, heartbreak will make you a better person.

2. You will be better prepared

Like love, time heals the emotional wounds of a business failure. As you rebound, you will be emboldened with new insights, knowledge and experience. You will know better what it is you seek, what is important to you, and more important, what you should avoid the next time you try.

Take on every heartbreak and failure as just another life lesson that prepares you for the next.

Related: The Million Rand Question That Can Resolve Your Company Woes

3. You will rebound faster

You will almost certainly have more than one heartbreak in your life, so too will you have more than one business failure. Like heartbreak, experience is what helps entrepreneurs rebound from and persevere through each subsequent failure, and each time the recovery gets easier and faster.

Finding new passion and enthusiasm gets easier when you better understand just how resilient you are.

4. You will be more valuable

Experience trumps inexperience. Yes, there are benefits to working with someone who has not yet been tainted by institutional standards and paradigms, but my experience has demonstrated that the most valuable partners are those with whom I can relate. For instance, I find I have a deep connection with someone who has also been stricken with panic at the agonising reality that you must close an office and terminate 20 employees.

Only experience teaches you how to cope with that.

5. You will appreciate more

Like your first love, your first business will be difficult to enjoy. Fraught with uncertainty and insecurity, your perseverance will be fueled by infatuation and optimism instead of fact and reality. It is not until you have the experience to be more selective about what you want (and don’t want) that you will ultimately be able to appreciate the business for what it is.

So if you are holding back from pursuing your entrepreneurial ambitions, then my advice is to fear not the potential (and inevitable) heartbreak of failure, and instead approach it as an inevitable reality that will make you a better entrepreneur in the long run.

Venture on.

Related: Silent Killers of Great Businesses and How to Avoid Them

This article was originally posted here on Entrepreneur.com.

Peter Gasca is an entrepreneur, small-business consultant, author and business adjunct lecturer. He is the co-founder and CEO of Wild Creations, a specialty toy and game developer and manufacturer. Previously, Gasca had a successful career as a business-development consultant for USAID and a long career in real estate development. He is the co-author of One Million Frogs.

Business Survival

How To Have Your Store Run Smoothly Without You (So You Can Take A Well-deserved Break)

Below are some tips that can help ensure the smooth running of your store even when you’re not around, and let you take that break without the stress.

Higor Torchia

Published

on

store

It can be hard for business owners to take time off from their retail stores – whether that’s because they’re too busy, need to be around to make decisions, or simply feel they can’t relax without knowing how the business is tracking. But taking a break can be incredibly important, if not sometimes necessary. And as we head into the busiest retail season of the year, taking a break now before the rush could be the best thing you do – for yourself and even for your business.

Below are some tips that can help ensure the smooth running of your store even when you’re not around, and let you take that break without the stress. 

1. Make the most of technology that lets you keep an eye on your store from anywhere

The beauty of living in this modern age is that there’s an abundance of tools that can help you run your store even when you’re away. To do this, cloud-based software is the way to go. Using a cloud-based solution to run your store means that you will no longer have everything housed on your computer server in one place. Instead, you can access files, sales and stock data, financials, business reports, customer and even employee data from anywhere, in real-time, and from any device provided you have an Internet connection.

The other beauty of cloud-technology is that it’s usually relatively inexpensive compared to more traditional systems. If you haven’t done so yet, look into some cloud-based software options, such as point-of-sale and inventory management, accounting and finance, customer management, and employee management and scheduling.

Related: 5 S-Words Make Your Store Site Pay For Itself

2. Develop a store manual

Create a manual that your staff can turn to when you’re not around. Document procedures, contact information, and anything else that will help your employees to know just what to do in your absence. Some of the sections you may want to include in the manual are: 

  • General store information – What do you stand for? Who are your target customers? Instil this information in your staff. The more they know (and love) your business, the easier it’ll be for them to make decisions in line with your company values. Include details on personnel conduct, pay and scheduling, store access, conditions of employment, store policies, etc.
  • Customer service – Have an entire section dedicated to taking care of customers. Include information on conduct, customer service standards, lost and found procedures, and dealing with difficult customers. Also, provide detailed instructions on how to handle theft and shoplifters.
  • Cashier procedures – Include information on the operation of your POS software, the types of payments you accept and how your loyalty program works.
  • Contact information – Take note of the tools you use in your store (computer, accounting software, analytics, cameras, etc.), and provide basic instructions on how to operate them. These tools likely come with their own manuals, so make sure that employees know where those documents are and how to contact the vendor if required. Include the contact details for the individuals or entities that your store deals with, including vendors, suppliers, business partners, contractors, etc. Also have a list of emergency contacts, such as the local police and fire department, as well as medical facilities in the area.

3. Appoint a second-in-command

Pick a second-in-command (or 2IC) to take charge of the store in your absence. This person should be someone you trust who knows the business.

It’s best to hire someone from the inside — ideally an individual who’s been in the business for a few years (this demonstrates loyalty) and has shown strong leadership skills or initiative.

Related: Why Launch A Member-Only E-commerce Store?

4. Empower your staff

Of course, the success of your store doesn’t depend on your 2IC alone, which is why it’s important to empower all your employees always do their best, even when you’re not around. This can be accomplished by giving them adequate training and by fostering an open environment that recognises the efforts of each team member. Encourage questions and be sure to give them specific as well as big picture answers so they know exactly how their actions affect the company.

It is important that you clearly define the roles of each staff member. Establish who’s in charge of what and require your employees to be accountable for their actions. Finally, believe in your employees and show them that you do. Trust you did your job right when you hired and trained them and that they’ll be fine even when you’re not there.

5. Do a test run

When should you start planning for your absence? That depends on the nature of your leave and how long you’ll be away. If you’re planning to be out of the office for a few days, then giving your staff a heads up a week or two before would be enough. But if you’re planning for maternity or paternity leave, then obviously your team needs to be notified months in advance.

Still worried? Implement a test run by consciously getting out of the staff’s way for a day or two. Work from home for a while or stay in your office instead of the sales floor and tell your 2IC to handle the store. Consider hiring secret shoppers who can put your staff’s skills to the test and have them report the findings, so you can figure out ways to improve. 

With Christmas and holiday season fast-approaching, now is a great time to start empowering your team so you can find the time for a well-deserved break.

Continue Reading

Business Survival

Stop Surviving And Start Thriving In Business

It will inform your operations, which will inform your human and asset capital and lastly, the financial investments you make.

Published

on

growing-a-business-success

To thrive – and not just survive – in business you need three basic building blocks: 1) attract more customers and clients; 2) who spend more; and 3) buy more often. But how do we make this happen in the tight, recessionary environment we find ourselves in South Africa?

Despite the tough economic conditions, businesses can still thrive. In fact, many small businesses have been found to thrive in difficult economic conditions and are known as counter-cyclical businesses.

So how do you turn the tide from surviving, to thriving? You need to start thinking creatively, making informed decisions and being agile in the business environment. Always start with your marketing strategy. It will inform your operations, which will inform your human and asset capital and lastly, the financial investments you make.

Related: Business Basics: The Four M’s Of A Successful Start-Up

Ansoff Growth Matrix

Business leaders continuously explore various growth strategies to retain and grow market share. One of most respected and often used is the Ansoff Growth Matrix. It was first published in the Harvard Business Review in 1957, written by strategist Igor Ansoff to help management focus on the options for business growth. Ansoff suggested that an effective strategy considers four growth areas, varying in risk. This strategic planning tool guides us to understand our current situation, contemplate strategic options and consider the associated risks.

  1. Market Penetration: Market penetration has the least risk of the four options. Here you are selling more of the same things to the same market. You know your product and market well. The question is, how can you defend your market share and sell more to your existing customer? You may consider special promotions or introduce a loyalty scheme.
  1. Product/ Service Development: Product and service development is slightly riskier as you introduce a new component into your existing market. The advantage is that you sell to a customer/ client that you know, and they trust you. Ask yourself how to grow your product and service portfolio? You may consider adding new services and products or modifying your existing offering.
  1. Market Development: With market development you target new customers and clients with your existing products and services. You sell more of the same things to a different market. You can consider new sales channels, online or direct sales. Do a proper market dissection to target different groups of people, considering different age groups, gender and demographics.
  1. Diversification: Diversification is very risky. Here you consider introducing a new, unproven product or service into an entirely new market that you may not fully understand. You may need new expertise, acquiring another business or venturing into another sector. The main benefit of diversification is that during difficult times only one component or element of the business may suffer.

Related: My Business Is Growing… What Now?

The fifth element: Passion 

In addition, I would add one more element critical to business growth: Passion. It is the single component most critical to business success and, combined with any one or combination of the four areas of the Ansoff Growth Matric, it can equip small business owners with all they need to thrive in their business environment. Passion determines your business success, so make sure you have it in heaps to reap the rewards of your hard work.

Continue Reading

Business Survival

6 Common Decision-Making Blunders That Could Kill Your Business

Among the logical errors nearly everybody makes is thinking only everybody else makes logical errors.

John Rampton

Published

on

business-risk

Humans are often very irrational. If you’ve ever explored behavioural economics or psychology, you may have found a host of examples demonstrating situations when we make objectively bad decisions.

Below are six of the largest decision-making blunders we all make. Avoiding them will dramatically improve your decision-making, your quality of life and success.

1. Sunk-cost fallacy

Of all the ones on this list, the sunk-cost fallacy is the most common. Many of the decisions we make are final or difficult to change. For example, let’s say you invest R1 000 in Facebook, and the price of the stock goes down to R600 the following day. The fact that you put in R1 000 initially is irrelevant to the situation at hand; you now have R600 worth of Facebook shares.

What this means is that once the decision is made and our cost is incurred, there’s no point thinking back. You already put in the time, money or other form of investment. Considering that in any future decision is illogical, despite how tempting it is. Instead, present yourself with the new options at hand — without considering the sunk cost.

Related: The 3 Dumbest Business Mistakes New Entrepreneurs Make Most Often

2. Narrow framing

Would you take this bet? You pay me R1 000 if a flipped coin lands on heads and I pay you R1 200 if it lands on tails. Most people would say no. We tend to be risk-averse, unwilling to risk something like R1 000, despite the reward being a bit greater.

Now, what if I offered you that bet, but I promised we would flip 100 coins? Each time, the loser pays up. Would you take it then?

Almost certainly, right? The chances that you lose money, overall, are extremely slim. This idea can be applied throughout life. When we’re in situations that will repeat themselves over time, we should take a step back and play a game of averages.

3. Confirmation bias

Another common one in the worlds of psychological and behavioural economy is confirmation bias. It hurts our ability to keep an open mind and shift our opinion. When we have a held belief, we typically look for information that confirms our opinion while ignoring data points that tell the opposite story.

For example, if I’m really excited about a new software product that I just integrated into my business, with ten of my employees as users, I might have made up my mind about the quality of the service before we put it to use. I would then be more likely to listen to the three employees who enjoy it, not the seven who don’t.

There’s almost always information that will validate our opinions, no matter how wrong they might be. That means we need to always look for conflicting evidence and, from there, make judgements based on more well-rounded information.

Related: 6 Rookie Investor Mistakes You Must Avoid For Profitable Investing

4. Emotionally driven decisions

When we’re angry or upset, we’re much worse decision-makers. When you have to make an important decision and happen to be in a bad mood, you should hold off. Instead, wait until you cool down and can think more clearly. It will remove the outside influences and let you think more rationally.

5. Ego depletion

This one makes intuitive sense, but it’s one of the most common ways to make bad decisions. The idea of ego depletion is that when we’re drained, physically or mentally, we’re less likely to think critically. Think about the times you’ve been exhausted after a long day of work. In those moments, you don’t want to have to think hard about anything. Instead, you want your brain to work automatically.

What that means is that when you’re tired and faced with challenging choices, you’ll rely more on your instinct or automatic processes as opposed to analysis and thought. That can be extremely problematic in situations that require effort.

6. Halo effect

The halo effect says that once we like somebody, we’re more likely to look for his or her positive characteristics and avoid the negative ones. This is similar to confirmation bias, but it’s oriented around people.

Related: 10 Stupid Mistakes Smart People Make

For example, let’s say I just hired someone named John, who was great during his interviews. Through his first few weeks, John does a few things well at work, but he also does many things poorly. The halo effect — brought on by his wonderful interview persona — could cause me to ignore his poor attributes and emphasise his good traits.

This can be detrimental to our ability to make judgements about others. We have to realise our biases toward certain people and eliminate them.

These are a handful of the many decision-making errors we’re all prone to. Although it’s challenging to scrutinise your preconceived notions, doing so is worthwhile. It gets easier over time and will, ultimately, make you a more effective decision-maker — personally and as a business owner.

This article was originally posted here on Entrepreneur.com.

Continue Reading

Trending