If as the entrepreneur, you are the key resource in the business, you are inviting stagnation. If you keep the master plan close to your chest and do not delegate or share with your team, you will stifle your business. The “dream” will end up becoming your prison as clients become your boss. You will hand over your keys of prosperity and sustainability to the clients you serve.
Over-relying on your clients
While a vital client can bring great profit, over-reliance on them can offset loss due to the law of diminishing returns. It won’t matter what you put in when this law hits the post optimal limit. Don’t put all your eggs in one basket. Try to explore ways through which you can bring new markets on board.
Ignoring compliance requirements
Ignoring compliance requirements such as tax, licenses and other regulations is the best way to set up shop for failure. The entrepreneur, much as a building would, will have to shut down for renovation – compliance.
Lack of systems
Your core team is an essential determinant of the success of the business. Lack of competent managers is enough to ground you, bringing about hemorrhage. How do you do your recruitment? How soon can you replace consistently inefficient personnel?
Lack of systems, policies, processes and controls is the best way to let growth opportunities and success slip off your fingers. Think of it as a sure way to rule yourself out of the game without anybody disqualifying you if you lack these things. The team can be stuck and can’t make decisions. Scaling your business becomes difficult. They release you into the next level.
The writer of this article, Mr. Isaac Kingori Mwangi, is a Senior Manager, Corporate Banking and Trade Finance at Credit Bank.