The biggest problem business owners have is that they’re experts in their field and novices in what it really takes to effectively run a business. That’s what usually trips them up, sooner or later.
Don’t let that happen to you. Admit that you don’t know what you don’t know about business, starting with these tips to help grow your business. Some are straightforward, others are counterintuitive, but they’re all true.
The bottom line is do you have enough money in the bank? The most common business-failure, hands down, is running out of cash. If you know you’ve got a cash flow or liquidity problem coming up, fix it now.
Fire Bad Employees Quickly
If an employee isn’t performing keep detailed notes of what areas aren’t meeting expectations. Next, have a closed door conversation about their performance and also document that conversation. Have the employee sign off on your notes, as well as, allowing he/she to write an explanation. When given adequate time and the employee still isn’t hitting the mark let he/she go. Don’t delay and hope for the best. Chances are the situation isn’t going to get better.
Take Care of Your Stars
This goes for every company, big and small. The cost of losing a star employee is enormous, yet business leaders rarely take the time to ensure their top performers are properly motivated. Bonuses are an excellent motivator and they should be tied to performance. Develop a bonus system that motivates, challenges, and compensates those employees who make you money.