Ten Business Killers You Should Know About

This list could be 1,000 items long. Frankly, it could be almost infinite. Businesses have died from all sorts of reasons. So, we thought we would make some major categories that often kill businesses. If you find yourself doing one of these things, get it fixed QUICKLY!

1. Inability to Adapt - This is fairly straightforward, but many businesses don’t pay it any heed. They assume because they have been successful in the past, and possibly even in the present, it ensures success in the future. Nope. Sometimes businesses have to read the tea leaves to remain relevant.

2. Toxic Work Culture - Let’s be honest, this usually happens as a trickle down affect from the top. If the leadership are, um, assholes; it likely means the business culture will stink. We’ve all been in businesses where the cultures are terrible, and our only fantasy is how to escape it relatively unscathed.

3. Listening to the Inexperienced - People without real world experience have an uncanny ability to sound credible. Their ideas, although often well-meaning, will often not be helpful. Make sure to take advice from people who have fruit where you want fruit!

4. Overworking Employees - Many businesses make a habit of overworking their employees. What seems like a highly productive situation burns out the best performing workers, and ensures that no one is truly happy. Adequate staffing is a necessity for a growing business.

5. Undercapitalization - Ironically, I was once turned down for venture capital because I wasn’t asking for enough money. They took it as a sign I was too inexperienced to know what it required to launch a business and compete.

6. Partnerships - Okay, so this is a little too broad of a statement…but there is some truth to it. Many business owners get into situations where they have fights (because they are 50/50 owners), or a partner demands to be CEO (who isn’t nearly cut out for it), or any number of other issues that result from partnerships. When getting into a partnership, make roles clear, the decision process crystal, and only do it if you are confident in the other people (it’s like marriage, it always starts out with rainbows and cotton candy feelings).

7. Inability to Scale - Let me be specific on this one. In times past, it was the ability to make “widgets” in increasing scale. With most businesses today, it’s finding ways to duplicate offerings without duplicating man hours. For example, a coach that meets one-on-one might be able to charge $500 per hour. However, if he has an online course he has no limit to how much he can make per hour.

8. No Distinct Advantage - Businesses offering a common product or service, or one easily duplicable, are likely to get eaten alive. It’s just too easy to copy someone’s idea or product in today’s market. You need some form of advantage. You need to be first to market, disruptive to an industry, have copyrights or patents, unique talents, etc. Why would your clients ONLY want to work with you and not just buy from your competitor?

9. Self-Sabotage - If business owners aren’t careful, they might fall for this trick. Most people have a built in threshold for success or influence. When they confront that boundary they subconsciously knee jerk. They will make a stupid or hasty decision, they’ll exit too early, they’ll stay in too long, etc. To avoid self-sabotage, surround yourself with people who know your tendencies and don’t make any “urgent” decisions without proper consultation.

10. They Become Insular - A company doomed for failure is the company that “knows it all.” When a company stops seeking outside support, expertise, and even competition; they will cease to be affective. Great companies don’t only take advice from within, but allow advice to come from all sorts of places. A healthy business is like a river…not a stagnant pond.