3 Reasons Why Your Business Might Go Down Hill and How to Avoid That
One quarter, you're getting more than your projected profits and getting more clients than ever but then, in the next few quarters of the year, your business is suddenly doing bad, and you start spending more than you earn. Your clients start leaving you, and nobody's buying your services or products anymore. What happened?
There are times when we think about the question—" What did I do wrong, and how do I fix it?"
Many factors contribute to a business losing its edge, but today, we'll talk about three crucial turning points that you might want to look out for and how you can correct it before it's too late.
There's no communication in your organization.
One of the biggest problems in a business (especially when there are other people involved) is the lack of communication with everybody.
There are so many problems that come just from this single issue like miscommunication, confusion, and the fact that no one doesn't know what's happening.
For example, you had a big project lined up, and the deadline is coming up. For the whole month, everybody was working on their part without any communication at all.
You assume that all the parts are ready, and you call for a meeting to discuss how to present your project to your client but lo and behold; somebody forgot to finish one thing.
Missing one thing in a project leads to other team members missing their parts of the project, and the worst part is, you didn't even know because there was no communication.
This is only one of the thousands of complications you might face when dealing with this problem, so the best course of action to prevent this is to hold regular meetings. It doesn't need to get personal or severe—you need your team to be up to date and coordinated.
Give the whole team access to live communication tools such as Slack or Microsoft Teams, so everything is in one place, and no one gets left behind.
You focus too much on the competition.
Another reason why your business could go for a turn for the worst is focusing on your competition.
You might see them releasing a promo that week, and you decide to do a promo of your own. They release a product; you release something similar. Or maybe you start spending too much time researching their numbers instead of yours.
While it is an excellent strategy to find out what your competition is doing, it's not an essential step towards success.
Everybody has their race because everyone is different.
You might see that they're getting more profit faster than you and that's okay. There's no problem with that, and you should be happy for their success because they worked hard for it. The best thing to do is to keep focusing on your goals and staying true to your values and the message you want to spread to your audience.
Unrealistic expectations and goals that just put stress on everybody.
The last one I wanted to talk about is having unrealistic goals and setting these goals in your organization. For one, instead of motivating your team, it does the opposite.
When your company sees that you're setting goals that are almost impossible to hit, your people might take it badly and feel exploited or even insulted.
I'm not saying setting big goals is not a good thing, however. But there's a difference between the two. Setting a big goal with a reasonable deadline and a timeline that makes sense is okay. There might be some extra work ahead, but if you discuss it with your team correctly and communicate well, everybody will pitch in and do their best.
However, if you suddenly go and tell them that you want to set a goal to raise a million dollars by the end of the month and you're nowhere near those figures, that's something else entirely.