The one big generic mistake when starting a business
Next week, I am onboarding in Jerusalem a new client, as their business mentor and coach. My role as ever will be to identify core problem areas that they have missed and then to help them to learn new skills. As ever, I will base my initial work around the questions:
What is the question that you do not wish a business mentor to ask you,……and why?
This particular company was only recently set up. Initial sales are coming in. However, there are a string of inconsistencies. These include no cash flow planning, lack of clear strategy, poor communication with contractors and much more.
Ironically, this subject relates to a talk I am preparing – 10 mistakes a CEO makes when starting out. I will not only refer to the above issues, I will also consider procrastination, the ability to choose the correct staff, and time management. These and other challenges impact directly on accurate decision-making, which is so critical in those early stages when you cannot afford mistakes.
However, if there is one core mistake that I see repeated by so many CEOs from the outset it is that they try to do things by themselves. For reasons of pride or maybe they are too embarrassed to ask or possibly becasue they do not know any better, they seek to act (and rule) on their own. If they would just open their eyes, that should never be the case.
The fact is that any commercial organisation is dependent on a bank, accountant, suppliers and more. Further, fewe of us are experts in all of these fields. And when you factor in additional demands of each individual set up, this creates pressure on the CEO. If they cannot manage, what is the solution?
A business mentor (or consultant) guides you through those initial stages, challenging you to ask the right questions and to seek out alternatives. They provide a strong and valuable shoulder to lean on.
I admit that this sounds self-promoting, but just consider my new prospect. Just as a result of our phone conversations, they have already begun to set up new controls and take a different approach to a core service provider. These moves will significantly improve the running of operations.
There is nothing wrong in asking for help in business, even if you are a CEO, and especially when you at the beginning of your commercial dream. Actually, it is oh-so the right thing to do.