Is Your Business Sick?

If I were to ask you what the symptoms of a cold were, I’m fairly certain that together we would come up with a list we agreed upon. Symptoms like: scratchy throat, runny nose, exhaustion etc. AKA - your body gives you signals that something is amiss.?

Well, the same goes for your business if you pay attention and know what to look for.?

Your business will show warning signs that something isn’t right, way before it has a full-blown flu.?

There are tons of early symptoms of a business that’s heading towards trouble, but they’re easy to ignore. However, the danger in ignoring these early warning signs can be summed up by this saying “businesses go bankrupt slowly, then suddenly.”?

My hope in writing this post is to share some common symptoms of a sick business so that you can become an expert at monitoring your business for these early warning signs, and then make the necessary course corrections to keep it healthy.?

Here are the most common early warning signs of a sick business:

1. Your business has stopped growing: If your business is stagnant and not growing, you’re likely experiencing significant problems. Every business needs a level of upward growth and trajectory to keep up with growing costs, inflation, materials, labor, insurance, etc. When your costs increase you have to either: eat them OR pass them onto the customer. If you keep your prices flat, while costs continue creep up, you’re in trouble.?
2. You feel like your business owns you: This is common for small business owners and last I checked, it’s no way to work! You’re supposed to own your business, not the other way around. You likely became an entrepreneur to make a great living and to use your business to create the life of your dreams - but oftentimes, this isn’t how it goes down. If you’re simply reacting to each next fire in your business, you need to sit up and pay attention. A great business is a precious tool that can produce personal wealth and freedom that allows you to enjoy SO much more of your life, outside of your business.
3. You work too many hours: Do you believe that your compensation is in-line with the hours you work, and the risks you take on, as a small business? For some of you, you might answer “no” and that’s a problem. You want to strive for a healthy paycheck that is significantly more than you’d make working for someone else. You want to have sufficient funds to attract and retain top talent, all while having enough to invest back into the business. Plus, you want to be funding a retirement fund, as there is no pension waiting for you after your career. A good formula is to take your gross salary and divide it by your weekly hours worked and get a sense for your true hourly wage. For some, this will be a real kick in the gut. Whatever that number is, I can almost guarantee that it’s not enough for the sacrifices that you make AND the daily risks you take. Many small business owners take home less pay per hour than they would if they worked for someone else which is backwards, because WOW is it a LOT easier to work for someone else! However -- if you’re willing to recognize this, you can start to shift your business to put it back into a position that balances your time and effort for what you charge, so that you can build significant wealth for your future.
4. You dread going to work every day: If this is the case, and you’re stressed from being trapped in something that you don’t love, you’re not running a great business. Your business shouldn’t drain you emotionally and physically. You want to feel excited for a new day to work on your business; that’s the sign of a healthy business.?
5. You never seem to have enough cash: Do you struggle making payroll or paying your bills? Are you unable to hire the best person for a job because you don’t know how to pay them the going market rate? If so, your business is sick because no cash quick equals no business. Cash is the life blood of your business.
6. You can’t attract and retain top talent: Do you have a high turnover rate? Are your key players constantly complaining about their pay? If so, your business is sick. You can’t run a healthy business without great people.
7. You don’t have time for anything but work: This is a tough one for many entrepreneurs, as it’s easy to use the excuse “I’m working hard now so that I can relax in the future,” or “We are so busy,” or “They can’t do it without me…” I’ve heard them all. Here’s the truth: if your business is your life, and your life is your business, you’ve got no life! You’re missing out on family, friends, hobbies, spiritual growth, exercise, and so much more. When your work becomes all consuming, you pay a price - whether it’s today, or down the line - you will pay with your health, relationships, or something else you can’t afford to lose.?

So, it’s time for a gut check.

Do you see yourself in here? Chances are, yes.?

I know these symptoms to be true at times for most all business, having worked with hundreds of small business owners and being one myself!?

Some of these symptoms might hit closer to home than others, but the reality is that most of us have a lot of room for improvement, which means there is hope!?

It all starts with being real and recognizing that you don’t know what you don’t know.

In a future post, I’ll share more about best steps to build the business of your dreams to have you working less and making more -- so that you can build a sustainable business that can run without you.

In the meantime, let me know what struggle resonated most with you and remember to Soar, Not Settle!?