1739: [Part 1] 3 Hidden Sticking Points That Plague Small Businesses by Michael Mehlberg

[00:00:00] This is Optimal Work Daily, 3 Hidden Sticking Points That Plague Small Businesses, Part 1 by Michael Mehlberg of MichaelMellberg.com. If there's one thing we've learned from building several small businesses and working with small business owners, it's that running a small business is hard, and growing one is even harder. There are many reasons why, but at the simplest level, it's because they've got too many problems and too much to do with limited help and resources.

[00:00:28] Yet, through dedication, skill, and innovation, motivated business owners find a way to get things going. Clients and sales pick up. First hires are made. Solutions are added. More time and money are invested. Success begins to build. New opportunities and challenges arise. Some businesses will aim to continue growing, while others will settle into a comfortable and predictable pattern of revenue and operations. In either case, this can be an exciting time for small business owners.

[00:00:58] Leading a small business at this phase is challenging and even exhausting, but the experience is usually characterized by positive energy and optimism. Does it feel like you're working hard, but not moving fast enough? Nearly all small businesses hit that sticking point, and one of these three reasons may be why.

[00:01:15] Yet, almost inevitably, most small businesses eventually hit a sticking point. Sales may flatline or even decline. Issues with customers and quality emerge. Conditions in the market change. Cash runs short. Colleagues and employees become frustrated. While hitting a plateau or even regressing is normal in the life cycle of a typical small business, it can cause a lot of anxiety when you're sitting in the owner's chair.

[00:01:40] It feels like the game is changing around you and the playbook that you used to this point is no longer working for you. The excitement from the early phases transitions into concern. What was once energizing and exciting becomes a grind. You worry about your employees and partners. The stress of payroll and other obligations begins to build. It's a critical time in your business. Not time to panic, but time to take quick and decisive action to right the ship. The key at this point is taking the right action.

[00:02:09] As pressure mounts, it's tempting to look for superficial, tactical solutions to address the symptoms you are seeing. If sales are lagging, spend more on marketing. If competition is increasing, add more products. If cash flow is running short, lay off employees. While some of these moves may ultimately make sense or be inevitable, it is imperative to step back and assess the root cause of what is holding your business back. This is especially important when you've got limited time and money to work with before things become untenable.

[00:02:39] With that in mind, let's take a look at three underlying and sometimes hidden factors that can cause your business to hit a sticking point. They exist on a foundational level and can impact the business from the inside out. Quote, purpose is the foundation on which a business is built and it should inform every aspect of planning and decision making. End quote. One, lack of clarity. When you first start your business, you usually have a clear vision of what it is that you are setting out to accomplish.

[00:03:08] You focus on a product or a specific service where you have expertise, experience, and passion. However, as things move forward and the business begins to grow, it is easy to lose sight of your purpose. Sometimes it's because you're tempted to branch out into new areas or industries and you unintentionally spread yourself and the business too thin. Other times it's because communication breaks down as your team grows and differing opinions on priorities emerge.

[00:03:33] In either case, when your sense of purpose is weakened, it has a significant downstream impact on clarity in your business. Without clarity on what is most important, it becomes difficult to prioritize and make decisions and stay focused. Unhelpful distractions and disagreements emerge. Frustration and morale issues creep in. This will cause trouble and stagnation for businesses of any size, but it can spell doom for a small business that can't afford the wasted time and energy.

[00:04:01] Purpose is the foundation on which a business is built, and it should inform every aspect of planning and decision-making. From there, it must be well communicated and understood, flowing into your strategy, your brand, and your solutions. When you have clarity of purpose and alignment in your business, you and your team will know exactly what to focus on and will understand what is most important. If you're looking into the future of your business and everything is blurry, it's time to take a step back and work on your purpose.

[00:04:30] How to get unstuck. If you're suffering from a lack of clarity, you need to have a frank discussion on purpose. It's time to ask or re-ask the question, How does my business contribute to a better world and why? From there, assess where you are today and what's holding you back from moving closer to your purpose. Identify some simple short-term priorities and goals that will get things on track. Communicate them extensively to your team to foster buy-in and commitment. Our post entitled,

[00:05:00] What is Effective Strategic Planning for Small Businesses? will guide you through this process. It includes a free download you can use to work on your purpose statement and plan. 2. Hear that on tomorrow's episode. You just listened to part 1 of the post titled, Three Hidden Sticking Points That Plague Small Businesses, by Michael Melberg of michaelmelberg.com. And a big thank you to Michael, who is a family man, an entrepreneur,

[00:05:30] a business professional, fitness nut, organization freak, productivity junkie, and the author of Home Early, a book that is about destroying distraction, becoming powerfully productive, and finishing work before dinner. You can get the first chapter of his book for free, with a bunch of worksheets to go along with it as well, right on his site, which again is michaelmelberg.com. And Melberg is spelled M-E-H-L-B-E-R-G. So come check it out and show him some support.

[00:05:58] Hope you liked part 1 of this post. We'll have part 2 for you tomorrow. And if you haven't done so, check out our other podcasts, which you can do by searching for Optimal Living Daily in whatever podcast app you're using right now. All right, I'll see you back here tomorrow, where we'll finish up this post from Michael, and where your optimal life awaits. We'll see you next time.