Business Education

Custer’s Last Stand, the Dade Massacre, and Your Business

On June 25th, 1876, Lieutenant Colonel George Armstrong Custer infamously led 210 men into battle against 2,000 Sioux and Cheyenne warriors. Although it’s commonly believed no U.S. soldier survived, historians believe there was at least one man who made it out of the conflict alive.

Approximately 41 years earlier, a lesser-known U.S. military commander led his men into a similarly disastrous situation. Army General Francis L. Dade 107 took men on a mission to relocate a Seminole tribe. But, the soldiers were ambushed by 180 Black Seminole warriors, and just 3 of Dade’s men survived.

In both instances, the leaders ignored advanced intelligence and severely overestimated their forces’ abilities to carry out their respective missions. Additionally, both tragedies were completely avoidable, but neither leader would listen to reason and allowed arrogance and the pursuit of glory to cloud their judgment, resulting in senseless slaughters.

Entrepreneurs should take these historical tragedies to heart. Particularly when they don’t see any real downsides. It’s not easy to get past legitimate confidence but it’s quite dangerous to overestimate what can be realistically accomplished. So, let’s take a few moments to look at how such attitudes can lead to unnecessary, messy, and costly mistakes, and offer strategies for entrepreneurs to maintain a healthy balance of confidence without veering into hubris.

The Perils of Arrogance in Small Business: Avoiding Costly Mistakes

Small business owners often wear many hats, juggling the roles of visionary, manager, marketer, and more. While confidence is a crucial trait for any entrepreneur, unchecked arrogance and overconfidence can lead to a series of missteps that can threaten the very survival of a business.

The Pitfalls of Arrogance

It all starts with ignoring market feedback. Arrogant business owners might dismiss customer feedback or market research, believing their vision is infallible. This can lead to products or services that don’t resonate with the market, resulting in poor sales and wasted resources. For instance, a restaurant owner might ignore diner complaints about the menu, leading to decreased patronage. But, this example certainly isn’t all. Here are some more common mistakes:

Overlooking financial prudence. Overconfidence can lead to lavish spending on non-essential items or ventures without proper financial analysis. This might manifest as spending on an extravagant office space or an unnecessary expansion, draining cash reserves that could have been used for more critical operations.
Underestimating competition. Thinking you have no real competitors can blindside a business when a new or existing competitor gains market share. An example is a local bookstore owner who believes their personal touch is enough, not noticing or preparing for the rise of online book retailing.
Poor decision making. Arrogance can foster a culture where questioning decisions is discouraged, leading to groupthink. Decisions made without diverse input can miss critical flaws, as seen in businesses that pursue a flawed product launch without sufficient critique.

And last but not least – neglecting relationships. Overconfidence can make owners dismissive of their employees, suppliers, or partners, damaging relationships vital for business success. This can lead to high staff turnover, supply chain issues, or missed collaborative opportunities.

Strategies to Avoid These Mistakes

Fortunately, there are several strategies you can use to prevent your company (and yourself) from falling into such traps. However, none of these measures are easy and will prove especially difficult. And it begins with the most difficult – the ability to cultivate humility. You should regularly seek and genuinely consider feedback from employees, customers, and peers. Humility involves acknowledging that you don’t have all the answers and being open to learning. Still, this probably won’t be enough. So, here are some more steps to take:

Engage in continuous learning. Stay informed about industry trends, new technologies, and business strategies. Workshops, seminars, and reading can keep your knowledge current and prevent complacency.
Financial discipline. Implement strict budgeting and financial oversight. Use cash flow projections and financial advisors if necessary to make informed spending decisions rather than emotional ones.
Competitive analysis. Regularly analyze competitors not just for weaknesses but also for strengths and innovations. Adopt a mindset of healthy competition rather than dismissive superiority.
Inclusive decision making. Foster an environment where team members feel safe to challenge ideas. Diverse perspectives can lead to more robust business strategies.
Relationship management. Invest in your relationships. Acknowledge the contributions of your team, maintain good terms with suppliers, and engage with your community or customer base.

What’s more, utilize basic risk management. Always consider the worst-case scenarios in your planning. This doesn’t mean being pessimistic but rather being prepared for various outcomes, which can mitigate overconfidence.

Arrogance and overconfidence are not just personal flaws; they are business risks. While confidence is essential in entrepreneurship, it must be balanced with humility, curiosity, and a willingness to adapt.

By fostering an environment of continuous learning and open communication, small business owners can not only avoid costly mistakes but also pave the way for sustainable growth and innovation.

Remember, in the world of business, it’s not about being the loudest voice in the room but about ensuring that voice is informed, considered, and collaborative.

Want to Accomplish More?

Do you want your company to grow faster and earn more while you spend more time with your family doing all the things you started your business to do?

We can make that dream a reality. Give us 30 minutes and we will show you how to get your life back. Skeptical? Good! Put us to the test.

You can call us for your free appointment at 480-240-1226, or, if you prefer, send us an email. You can also visit us at Waters Business Consulting Group to learn more about us and the services we offer.

Like this article?

Entrepreneurs Can Use These 5 Tricks to Fight Drowsy Days

September 14, 2017 No Comments

Everyone pushes through drowsy days. In fact, a study by the Centers for Disease Control and Prevention reveals 35 percent of adults ages 18 through 60 do not get the recommended 7 hours per night. That leads to a perpetual sense of tiredness. And, if this affects you, you know full well it’s not good for your productivity. But, if you’re unable to get a decent night’s sleep, you’ll need ways to cope to get through the workday. 5 Ways to Beat Drowsy Workdays There’s a lot you can stop doing to be successful in business. When it comes to sleep, you can also stop doing a few things. First and foremost, give yourself some tech-free time in the evening, particularly before you go to bed. About an hour before you go to sleep, turn off or silence your phone, tablet, laptop, desktop, and other devices. Also, get in a routine. Go to bed and wake up at the same time. We live in a fast-paced world where everything is quicker and more urgent. In leadership, in business, and in life, it seems we’re always behind: It needed to be done yesterday! It needs to be done now! Why isn’t it already done? Our days are hectic and our nights are busy. We constantly have to be on and available. Unsurprisingly, the side effects of this constant rush include an epidemic of fatigue. —Inc.com When you’re an entrepreneur, you work long, hard hours. And, it’s not easy to just relax and unwind at night when you have so much idle time. It’s natural to mull over the day and to plan ahead for tomorrow. But, you need a good night’s rest to be your best. However, you can’t let go and toss and turn through the night. Now, that familiar mid-afternoon 3 o’clock yawn grips you. What do you do? You need to make a good impression when you have a face-to-face meeting. Even if it’s just another day, without a big agenda, you might still need to fight fatigue. Here are a few helpful suggestions for beating those drowsy workdays: Leave your workspace. Being in the same environment for hours can easily lead to boredom (especially if you’re already tired). So, do yourself a favor and get outside. A walk around the block. A trip to the nearest mall for some quick window shopping. Just get out of the office for 15 or 20 minutes. Have a quick, healthy snack. Fruits, vegetables, and nuts are excellent sources of nutrition. And, some even help perk up your blood sugar levels. That’s enough to give you some more energy. It’s also a great way to counteract the effects of a big lunch that bogs you down. Do a little exercise. You don’t necessarily have to go outside to reinvigorate yourself (although it does really help). You can exercise right in your workspace. Do a few stretches and follow-up with some simple calisthenics. Tackle a few no-brainers. Tiredness can also be made worse by staying on a difficult task. One solution is to go with a few mundane chores. Take out the trash, clean the kitchen, organize your desk, anything that doesn’t require a lot of concentration will do the trick. Play some music. It’s a well-known fact that music stimulates the brain. And, it also impacts the body itself. So, put on some of your favorite tunes and get into the rhythm. Your attitude will quickly improve and you’ll feel reinvigorated. What do you do to power your way through a drowsy afternoon? What methods allow you to cope the best? Please share your thoughts and experiences by leaving a comment! Interested in learning more about business? Then just visit Waters Business Consulting Group. [shareaholic app=”follow_buttons” id=”26833294″]

Should I Sell My Business During the Downturn or Wait until the Economy Rebounds

July 22, 2020 No Comments

If you run a successful business — and have for many years — it’s understandable that during such an uncertain time as there is now, you might consider just getting out. This is particularly true for individuals who’ve enjoyed a good amount of success but just don’t want to go through another cycle that again puts them emotionally through the wringer. However, because of all of that’s going on in the economy, with things largely down, is it best to sell now or wait until the economy recovers? The Downsides of Selling During a Recession That’s really the million-dollar question. Of course, a recession will naturally be a more tough environment in which to sell. There will be fewer buyers available as small business credit tightens and even larger organizations avoid potential risk. So, you’ll probably find it a bit challenging to find a suitable buyer. The Great Recession ended in 2009 and impacted the lives of many. Now as the economy appears to be headed into another downturn, it’s a good time to review how to take advantage of the recession instead of letting it take advantage of you. —Investopedia Then, there’s another fairly obvious factor — will your business bring the amount you expect? Put another way, can you sell it for the same amount or near the same amount you would be able to during normal economic times? Also, how do you effectively market your business in order to attract the right type of buyer? (This is where an experienced business consultant/coach would come in very handy.) The Advantages of Selling During a Recession Conversely, there are some distinct advantages to selling during an economic downturn. Here are some benefits you should know about: You might be able to leverage a slight discount. Okay, so that’s probably not what you want to hear, but this doesn’t mean giving your company away for an undervalued, low-ball price. What it does mean is being able to attract qualified buyers with the promise of a fair deal. By taking this approach, you may be able to sell it faster and move on to something else, or perhaps retire, in a shorter period of time. You can separate out time-wasters from serious buyers. This is something just about any business that’s for sale encounters. People who talk a good game but never really follow through and actually take action. On the flip side, serious buyers will understand the overall economic circumstances. Therefore, they’ll be more sincere and eager to get the deal done. In other words, they’ll likely have their ducks in a row and be ready to proceed because they’re serious. Remember that you’re in control. Very few business owners who decide to sell are completely comfortable with their decision. The majority will second-guess themselves over and over again, even after they go through with a transaction. The bottom line is, if you are able to get a fair price, it’s probably not worth risking waiting any longer, because the economic environment could worsen and that will most definitely hurt your chances of selling. What other advice do you have? Please take a moment to share your thoughts and experiences by commenting and giving others valuable feedback! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Now is the Time to Get a Sweet Deal on Office Space

September 9, 2020 No Comments

In the midst of the COVID-19 shutdown, and the simultaneous rise of WFH or work-from-home dynamic, commercial real estate is steadily on the decline. With many businesses closing and others surviving on minimal staff, office space, retail locations, and other commercial real estate is and will continue to experience a huge vacancy rate. While that’s not good news for them, for savvy business owners, it presents a prime opportunity. Meaning, it’s very possible to lease (or buy) commercial property for a really good deal. The Buy Low, Sell High Strategy Everyone’s heard of the old “buy low, sell high” investment strategy. But, only those who actually act on it are the ones who benefit. When the market is down, investment advisors often tell their clients to buy why everything is on sale. However, too many people are just too risk-averse and don’t follow the advice. Asking rent prices have yet to fall, which is typical in a down cycle as landlords try to hold out as long as possible, says CBRE chief economist Richard Barkham. At the same time, Barkham says, landlords are eager to fill space, so they’re willing to offer a bevy of concessions to the right tenants, including rent-free periods, build-out expenses, and flexible lease terms. —Inc.com In fact, more people tend to cash-out when the market goes through a downturn. They “realize” an otherwise “paper loss.” The point obviously being that the adage of “buy low, sell high” really works. And, it works so well, it’s repeated over and over. The real trick is to just do it. How to Negotiate the Best Office Space Deal With all that said, now is the time to take advantage of the circumstances and land a sweet deal on commercial space. Here are some helpful tips for how to lease commercial space at a substantial discount: How long has the space been vacant? Learn how long the space has been vacant because it will give you a sense of how eager the landlord or owner is to fill it. Of course, the longer it’s been empty, the more motivated the landlord will be to sign a new lease. Are there other interested parties? If there aren’t any other companies interested in the space, that will definitely work in your favor. Simply put, the less interest, the better for you. After all, that means there’s no competition. Does the property have other vacancies? A property landlord or owner with multiple vacancies will be far more willing to negotiate in order to fill as much space as possible. Learn about subletting policies. If it’s allowable, subletting can help to offset the cost of leasing commercial space and make it even more affordable. Do your homework on similar properties. Another thing you can do is learn about similar spaces. Use this knowledge to negotiate a better deal. For instance, if another landlord/owner offers a better lease rate, you can use that as leverage to bargain on a property for less. What other suggestions do you have? Please share your thoughts and experiences by commenting and giving others some valuable advice! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Custer’s Last Stand, the Dade Massacre, and Your Business

The Perils of Arrogance in Small Business: Avoiding Costly Mistakes

The Pitfalls of Arrogance

Strategies to Avoid These Mistakes

Want to Accomplish More?

Like this article?

Related Posts

Entrepreneurs Can Use These 5 Tricks to Fight Drowsy Days

Should I Sell My Business During the Downturn or Wait until the Economy Rebounds

Now is the Time to Get a Sweet Deal on Office Space

Imagine Selling Your Business…

How Would Your Life Change?

Thank you for your interest in learning what your business is worth. We will be in touch shortly.