Companies fail when nine critical business problems go unanswered. Today, I am sharing some of the most important lessons about recognizing and resolving problems. First…
The 9 Critical Business Problems:
- Not adequately capitalized
- Loss of major customer
- Product obsolescence or failure
- Supply chain problems
- Loss of key employee
- Not knowing your true costs
- Misgauging market competition and product demand
I founded and led SafeData, a data backup and recovery company. In the first year, we acquired 7 major customers, but 1 customer represented 50% of the sales. Being a new company, we were happy to have increased sales and the prestige of having a prominent customer as a client. On the other hand, we understood the pain that losing that customer would cause. How we planned for problems:
- We assumed the customer would eventually leave.
- Signed customer to 3-year contract with auto renewal clause.
- Made sure customer depended on us and was happy with our service.
- Increased customer base to reduce dependence on 1 major customer.
The customer stayed 5 years. Because we had a plan, the company grew and prospered. The plan was the key to our success. In Planning Saved My Business: I explain the importance of planning and the pain that occurs when you don’t plan.
Leadership is recognizing and resolving problems.
6 Keys to Resolving Problems:
- Recognize problem
- Involve the team
- Make a plan
- Set deadlines
- Monitor progress
- Celebrate success
My favorite is: Celebrating Success.
- Problem resolved
- Recognizes success
- Way to rally and reward team
Can you add a 10th critical problem? How are you resolving problems?
P.S. – Do you need an Outside Director, Advisory Board Member, Trusted Advisor, or Interim CEO? Someone who can help you see your business and your goals through “Fresh Eyes.” Contact me and I will work with you to look at where you want to go and help you find the best way to get there. Sometimes all it takes is someone with a fresh viewpoint, unencumbered by company politics or culture to help find the right solution.
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I would add #10 not having an effective sales and prospecting strategy.
So many companies think, I have a good product, I have a great website and social media, what they forget is they need a skilled and nuanced sales team to marry customer the organization.
Good Luck and Good Selling!
Robert…That’s a great #10. Effective sales and prospecting strategy is important. A great product does not sell its self. Thanks for your comments.