The Three Biggest Mistakes Made by Owners of Growing Companies

Mistake #1: the owner fails to grow with the business
• micromanages
• continues to use same way of staying in control that worked when the biz was smaller
• becomes a decision bottleneck

Mistake #2: failure to develop procedures & systems to help the company run smoothly as it grows
• owner shoots from the hip instead of planning & executing
• no long-term strategy
o frequent changes in direction –
o these lead to costly mistakes
• Lack of solid foundations: as Jimi Hendrix said, “Castles made of sand_fall in the sea_eventually.

Mistake #3: failure to understand the value of the company’s human assets
• “Top-down” management stifles initiative and innovation.
• Not understanding that many of the best employees are motivated by being a part of “making it happen.”

Getting it right the first time:
• “You must learn from the mistakes of others – you can’t possibly live long enough to make them all yourself” –Sam Levenson
• Get input from people outside the company – don’t rely only on your own perceptions
o Customers
o Suppliers
o Other business owners

See also: in this blog: Foundations; This Job Has No Dignity; Sharing the Sandbox
Listen to Joe Connolly's interview with Steve Caccavo on WCBS Radio
View information about Steve's presentations at http://constructivebusiness.info/Presentations.aspx

-- Steve Caccavo, Founder of Constructive Business Solutions™, draws on his years of entrepreneurial experience to help owners strengthen and grow their small and mid-size businesses. © 2010 by Constructive Business Solutions™, a division of Positive Employment Practices, Inc.