Business Education

Hurricanes, Wildfires, and Earthquakes: How Business Owners Can Effectively Deal with Big Problems (Without Ignoring Smaller Ones)

Two monstrous hurricanes hit the southeast late last year – Helene and Milton. Weeks later, ferocious wildfires engulfed southern California. This past Sunday, earthquakes shook Greek islands, followed by a pair of earthquakes rocking San Bernardino on Monday.

Each of these natural disasters wrought widespread devastation, particularly Hurricanes Helene and Milton, which ravaged multiple states, causing billions upon billions in damage. The wildfires consumed homes and businesses and the earthquakes left a huge swath of destruction. While each caused a lot of damage, their severity can be quantified.

Running a business comes with big challenges. And, when they happen seemingly at once or in quick succession, it multiplies the magnitude and the stress. Such a situation can easily be debilitating and even paralyzing. But, taking a step back and prioritizing each one (without ignoring any due to its relatively small size), makes the circumstances appear much less foreboding.

Mastering Problem Prioritization for Business Owners: A Step-by-Step Guide

Big-time challenges arise constantly in any business, and the ability to prioritize and solve problems efficiently is crucial for sustained success. Business owners must navigate complex issues, avoid becoming overwhelmed, and ensure that no problem is left unresolved. So, let’s take a few minutes to help business owners master the art of prioritization and tackle problems one by one without neglecting previous issues.

1. Identify and Categorize Problems

The first step in prioritizing problems is to identify and categorize them. Business owners should make a comprehensive list of all the issues they face. Categorize problems based on their nature (e.g., financial, operational, customer-related) and the impact they have on the business.

2. Assess the Impact and Urgency

Once problems are categorized, assess their impact and urgency. Some problems may have immediate consequences that demand quick action, while others may have a longer-term impact. Use a matrix to rank problems based on their urgency and significance:

High impact, high urgency. Address these problems first, as they pose immediate threats to the business.
High impact, low urgency. Plan and schedule solutions for these problems to prevent future complications.
Low impact, high urgency. Address these problems quickly, but don’t let them overshadow more significant issues.
Low impact, low urgency. These problems can be resolved later, as they have minimal impact on the business.

3. Develop a Prioritization Framework

Create a prioritization framework that aligns with the business’s goals and values. This framework should guide decision-making and ensure consistency in addressing problems. Consider factors such as:

Business objectives. Align problem-solving efforts with the company’s strategic goals.
Resource availability .Assess the resources needed to address each problem and ensure they are allocated effectively.
Stakeholder impact. Evaluate how each problem affects stakeholders, including employees, customers, and partners.

4. Create an Action Plan

Develop a detailed action plan for each problem, starting with the highest priority issues. This plan should outline:

Objectives. Clearly define what success looks like for each problem resolution.
Resources. Identify the resources required to address the problem (e.g., time, budget, personnel).
Responsibilities. Assign specific tasks to team members and establish accountability.
Timeline. Set realistic deadlines for each phase of problem resolution.

5. Implement Solutions and Monitor Progress

With a clear action plan in place, begin implementing solutions. Regularly monitor progress and make adjustments as needed. Use key performance indicators (KPIs) to track the effectiveness of solutions and ensure that problems are being resolved as planned.

6. Review and Reflect

After resolving each problem, take the time to review and reflect on the process. Conduct a post-mortem analysis to identify lessons learned and areas for improvement. This reflection will help refine the prioritization framework and improve problem-solving capabilities for future challenges.

7. Revisit Previous Problems

It’s essential to periodically revisit previously resolved problems to ensure they remain resolved and that no new issues have arisen. Regularly reviewing past problems helps prevent recurrence and allows for continuous improvement.

How It All Wraps Up

Effective problem prioritization is a vital skill for business owners. By systematically identifying, categorizing, and addressing problems based on their impact and urgency, business owners can ensure that they tackle challenges efficiently and effectively.

Developing a robust prioritization framework, creating detailed action plans, and continuously reviewing past problems will lead to sustained business success and growth. Remember, no problem should be ignored; every challenge is an opportunity for improvement and innovation.

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5 New Product Rules Every Entrepreneur Should Know

May 24, 2017 No Comments

Consumers are truly creatures of habit. In fact, the average family purchases the same 150 products again and again, which accounts for a whopping 85 percent of all needs, according to a study conducted by Harvard Business School. Of course, that means when a new product appears on the market, its got to somehow work its way into those recurring purchases. It’s no secret that consumers are quite brand-loyal, so, this presents an even larger challenge. When you stop to consider your own purchasing habits, you begin to realize just how loyal you are to certain brands. Carving out market share is difficult enough, but, even more so when a product comes from an unknown or relatively new source. 5 New Product Rules every Entrepreneur should Know There are some 250,000 new product launches globally on average, per year. Obviously, very few make it past the first couple of years, as clearly evidenced by the nearby quote. What’s more, companies often fail to recoup development costs. In the grocery industry alone, the failure rate is even higher, ranging from 70 percent to 80 percent, according to research done at the University of Toronto. …the fact remains that the success rates of new product introductions and innovations have improved little over the last 20 years. Booz & Company reports 66 percent of new products fail within two years, and Doblin Group says a startling 96 percent of all innovations fail to return their cost of capital. —Fast Company For small-sized American food businesses, the success rate is even more sparse, coming-in at just 11 percent, which regulates an eye-popping 89 percent to failure. The top culprits of failure are poor product quality and design, but overestimating demand, bad pricing and timing, as well as incorrect positioning also make the list. The statistics go on and on when it comes to new product failure, so, it’s important to know what makes products get past their introduction to the public and sell. Here are five new product rules every entrepreneur should know and follow: It must have at least one solid advantage. There are several advantages a product can have and among the most persuasive are value for the money, prestige, effectiveness, convenience, and high-quality. If you look over this list again, you’ll find at the heart of all these is providing for want and need. For instance, the iPhone revolutionized the mobile phone industry — it fulfills a need, is a high-quality product, and provides many conveniences. The product must fit into consumers’ routines. If a product won’t easily fit into consumers’ routines, it won’t sell on the market. A product must be able to accommodate buyers’ routines because, as mentioned above, people are creatures of habit. Some products are able to break this rule, but these are few and far between. It’s got to work right out-of-the-box. American consumers love convenience, and, are very annoyed when a new product proves to be anything but convenient. Most people cringe at the phrase “some assembly required,” because of past experiences. Make a product that works right out-of-the-box and it has a much better chance of success. The benefits should be obvious to consumers. When consumers can readily identify the benefits of a product, they are more likely to buy it. Stop to consider the last time you were shopping for a specific type of item and compared brands. It’s highly probable you purchased the one you could easily spot its benefits. It can be given away for nothing (or part of a promotion). The Clorox company began marketing its first cleaning products to businesses and this approach failed. However, one owner’s wife saw that it had marvelous residential use potential. She gave small bottles of it away and soon after, sales skyrocketed. When consumers are given the opportunity to “test drive” products for free or at a low cost, they are more apt to purchasing it again and again. Though these elements will all increase the chance of success for a new product, it’s important to understand the market and to have an executable plan to be successful. We have several Clients that have new and innovative products that are succeeding because they have followed these five rules. Let us know your new product ideas and make certain yours meets these five new product rules. Want to find out about what a business coach can do for you? [shareaholic app=”follow_buttons” id=”26833294″]

3 Subtle but Serious Signs a Business Partnership is in Big Trouble

February 6, 2020 No Comments

Ostensibly, a partnership is an ideal way to bring two necessary but different skill-sets together. After all, it makes sense to join various strengths in order to form an alliance. Such an arrangement seems like it will yield fruitful results. However, far more partnerships fail than succeed. There are many obvious reasons why this happens. But, it’s not always so clear-cut. So, let’s take a look at some subtle telltale signs that a partnership is in trouble. The Biggest Partnership Dangers Dave Ramsey has made famous his five dangerous D’s of partnerships: death, disability, disinterest, drugs, and divorce. Of those, only one makes the list below. That’s because it’s not always crystal clear that something is awry. You generally spend more waking hours at work than at home, which means you have more opportunities to interact with your business partner and the nature of your interactions tend to be more intense, with more potential for conflict because there are so many external variables that are beyond your control. —Forbes.com There are scenarios when very subtle factors are in play. Unfortunately, most business people miss these signals put out by their partners. Eventually, they become more pronounced and at that point, it is usually too late to save the enterprise. 3 Signs a Business Partnership is in Jeopardy When a business partner goes through a very difficult time in his or her life, it’s usually quite easy to see the writing on the wall. But, there are instances when there are no overt problems or issues. Here are three subtle yet serious signs a business partnership is in trouble: Apathetic. Let’s begin with the only sign that makes the list above — disinterest. This can manifest in two different but similar forms: distraction and apathy. A lack of concern and focus can wreak loads of havoc on a business. Before you know it, the onus falls on you alone. That’s when you’ll realize your partner is no longer interested in participating. And, by this time, it usually causes an irreversible rift. Autonomy. On the opposite side of the spectrum is autonomy. Sure, being able to operate independently is typically a good thing. Except when there’s far too much of it. So much, you find out about key decisions well after the fact. This is a sign that unpleasant news is most likely on its way to you. Elusive. This is a very tough one and perhaps, the most frustrating of the two because it’s so difficult to understand. When your partner becomes elusive, that is to say, overzealous one moment and indifferent the next, you’ll struggle to cope with why. This will only lead to unnecessary disruptions and make the partnership unsustainable. What other signs would you add to the list? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

3 Big Reopening Mistakes Businesses should Avoid

June 24, 2020 No Comments

Businesses are anxious to reopen. Consumers are likewise ready to return to normal (or as close to normal as possible). But, any business reopening must do so responsibly. After all, not providing a safe environment will only backfire and cost them in a number of ways. This means taking a smart, incremental approach and one that can help to get things back on track. What to Know about Post-Pandemic Reopening The first thing any business owner needs to know is exactly what their state and local governments will allow and disallow. If you run afoul of the rules, even those which seem unfair, you’re only setting yourself for a lot of grief and probably a huge amount of regret. For these small businesses to come back after the pandemic abates, and once again serve as an engine of American innovation, they need aid. The Coronavirus Aid, Relief and Economic Security (or CARES) Act set aside $349 billion in loans and assistance for small businesses and there may be more to come. But business owners also need to make the best possible decisions to get them through this difficult period. —Harvard Business Review Another thing to know about reopening is how your patrons or clients will respond. Just because there’s a green light to open from the state and local government doesn’t mean the public will respond positively. In other words, you need to understand public sentiment. 3 Big Reopening Mistakes Businesses should Avoid Now, as for reopening, there are many things you should do to get back to full operation. But, there are also things you need to avoid doing, as well. Here are three of the biggest reopening mistakes businesses should avoid: Expecting employees to immediately return to work. Just because you’re ready (and willing), doesn’t mean your team members will feel or act the same way. So, speak with each one individually and listen to their concerns. Plus, encourage them to be open about their circumstances and be supportive, if necessary. Some business owners are expressing challenges with employees who are receiving unemployment which exceeds what they earned as an employee so they are reluctant to return. Business owners need to be prepared by discussing the need to help the business serve its customers. Also, if the employee does not return, there is no guarantee the employer will not have replaced the employee’s position when the previous employee’s unemployment checks end Not having procedures in place to maintain social distancing. At this time, it’s expected there will still be a need for social distancing into the foreseeable future. So, be sure to formulate a realistic plan to maintain those social distances in order to provide a safe and healthy environment. Trying to rush through the reopening process to get things back to normal ASAP. Whatever you do, don’t fall into the trap of trying to reopen to soon or at too fast a pace. While it’s completely understandable you’re ready to resume operations, if you rush, you’re likely to make rash decisions that will cost you in more ways than one. Remember to offer what the Customer wants. Instead of trying to reinvent your service offerings, ask the Customer what they want and most enjoyed or valued about your services and deliver what the Customer wants. What other mistakes would you say businesses that reopen are likely to experience? Please share your thoughts by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.