How can entrepreneurs identify problems before they become crises?

To prevent problems from turning into crisis, it's important to avoid the ostrich effect by regularly facing the key numbers that represent your business health such as your cash flow, profitability, liquidity, sales growth, customer retention and more. Especially during times when the numbers are not painting a pretty picture, you will need to review even more frequently and take strategic action fast. What you run away from solving will only remain to grow and fester. Make tracking, reporting, reviewing and actioning on your key metrics a culture and discipline within the business. This is an important habit to start at any business stage, not for only after the company has scaled.

Often feedback from team members can be crucial, especially if they are working more closely to the customer. They may hear of things that you have not heard because of their access to customers in the field. They may also hear of competition that is answering a problem your clients are having. For example, recently when working with a non-profit, right before we are going to have an event, an event platform that we had been using exclusively suddenly raised their prices. We had to change what we were going to do for that event as it was cost-prohibitive. Fortunately, another platform was available for us to use and we will be able to integrate it into our website easily.

As you implement solutions to problems you encounter, clear communication with your team is essential. Many in the company may be experiencing the problem first-hand. Show that you are aware of the issue and are focussed on delivering an appropriate solution to give your team confidence in your leadership. Keep the team informed as the solution is implemented and involve those affected by the problem more directly. Let the team know when you think the issue has been addressed but encourage feedback to verify this. Follow up by communicating what steps you will take to ensure this problem does not arise again and how the team can help.

We should always learn from our mistakes and never commit them again. This can help you get better and grow faster. I have made so many mistakes but I have also learned from them.

Entrepreneurs can proactively identify potential problems using innovative strategies like Scenario Planning for future changes, Risk Matrix Analysis to visualize and prioritize risks; De Bono's Six Thinking Hats for multi-perspective analysis. The Blue Ocean Strategy for creating new market spaces, while Reverse Brainstorming for potential problem causes. Cross-industry analysis adapts solutions from different sectors, and Design Thinking emphasizes human-centered innovation. SWOT Analysis with a futuristic twist, Mind Mapping for structured problem-solving; Futures Wheel for decision consequences, Crowdsourcing - diverse ideas; and Gamification to make problem-solving engaging and effective.

Decision making, vision and learning to skate to where the puck is going not where it is currently is a vital skill set for entrepreneurs. A vital part of this process is the network and ecosystem of advisors and colleagues who are diverse and bring their unique perspectives to your field of view. A broad vision with authentic and different points of view helps avoid large mistakes and builds a more effective roadmap for success.