In the midst of putting out daily fires, business owners often rely on short-term fixes rather than long-term solutions. However, this approach does not address core issues that impede a business’s success.
How do you break this cycle? According to Brian Moran, Founder and CEO of Small Business Edge and Bricks or Sticks, you need to step back and adopt a strategic view of your business and its foundation.
"[This] will give you a 20,000-foot view that shows where you have been, where you are now, and … the best paths to choose going forward to achieve your goals," explained Moran, who is a judge for the 2024 CO— 100.
[Read more: How to Write a Great Business Plan]
5 common 'cracks' in a small business's foundation
Moran shared five of the most common cracks he sees in the foundations of small businesses along with questions to ask yourself to uncover if these areas present problems for your company.
Lack of a clear vision and strategy
Without a well-defined vision and strategic plan, your organization may struggle to find lasting success. Moran advised setting clear, measurable objectives and a "GPS plan" to plot your course.
Ask yourself:
- Do I have a clear vision for my business? Is it communicated effectively to my team?
- What are my long-term goals? What is my plan to achieve them?
Poor financial management
Small businesses often struggle with cash flow and budgeting. According to Moran, establishing robust financial systems and regularly reviewing your financial health helps insulate your company against cash flow issues.
Ask yourself:
- Do I have a handle on my cash flow? Do I regularly review my financial statements?
- Are there areas where I can reduce costs or increase revenue?
Success requires discipline, commitment, and accountability. Stay the course and don't be tempted by quick fixes that don't address the root issues.
Brian Moran, Founder and CEO of Small Business Edge and Bricks or Sticks
Inefficient operations
Bottlenecks and inefficient processes swallow up valuable time and energy that could otherwise be devoted to growth, Moran explained. Streamlining operations and investing in artificial intelligence tools can help your business run more efficiently.
Ask yourself:
- Are my operations running smoothly, or are there recurring issues that I need to address?
- How can I streamline my processes to be more efficient?
Weak marketing and sales efforts
Small businesses with inconsistent or ineffective marketing strategies won't see the growth they're expecting. To avoid this outcome, Moran advises creating a comprehensive marketing plan that's tailored to your target audience.
"Otherwise, you open the door and give your competitors a seat at the table," said Moran.
Ask yourself:
- Am I effectively reaching my target market? Do I have a strategy to attract and retain customers?
- Are my marketing efforts yielding a good return on investment?
Inadequate team management
"Employee turnover and low morale can kill a business almost as quickly as poor cash flow," said Moran.
Solving this problem requires a threefold approach, Moran said. It entails hiring the right people, providing regular training, and building a strong company culture.
Ask yourself:
- Do I have the right people in the right roles? Are they motivated to perform at their best?
- How can I improve my team's productivity and satisfaction?
How to address and avoid foundational issues in your business
Below is Moran's advice about how small business owners can build and maintain a strong foundation for their business.
Be strategic about your operations and finances
Start by creating a detailed strategic plan that outlines your vision, mission, goals, and steps to achieve them. Then regularly review it and make adjustments as needed.
Moran also advised maintaining strong financial control, closely monitoring your cash flow, and working with a financial adviser to ensure you're making sound decisions.
[Read more: How Often Should You Revisit Your Financial Plan?]
Get feedback about your business
The best way to improve your business and solve problems is to talk to the right people.
"Seek feedback from customers, employees, and mentors, and be willing to adapt and evolve," Moran told CO—.
When it comes to bigger-picture challenges, your best resource is often fellow entrepreneurs.
"Like-minded business owners … understand what you are dealing with because they've dealt with the same obstacles and opportunities," said Moran, whose Bricks and Sticks community serves as a point of connection for entrepreneurs.
Keep your long-term goals in mind
Even amid short-term challenges, stay focused on your long-term goals.
"Success requires discipline, commitment, and accountability. Stay the course and don't be tempted by quick fixes that don't address the root issues," explained Moran.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
CO—is committed to helping you start, run and grow your small business. Learn more about the benefits of small business membership in the U.S. Chamber of Commerce, here.
