As being a businessman and running a business empire you might have made several foolish and unthinkable mistakes. Many have caused you a painful end of an ambition to build an award-winning business. But when it comes to blunders, however, you are far from alone.
There could be business tycoons, who have committed mistakes and thus have entirely killed their dreams as well. They might range from small manufacturers to global icons. Several companies are there, whose business founders made the unthinkable mistakes as well.
If you are a businessman, you can make several foolish business mistakes. Many of them can cause you a painful end of an ambition to build up a global award business. When the matter comes to folly, you are, however, not alone in this industry.
Avoid Repeating The Mistakes
To be a successful and profitable manufacturing company is not that difficult; you can’t get the goal. It’s not an impossible task to be a profitable organization, yet it could be a harsh industry to crack.
If you want to keep your quality high while keeping the costs at a lower level, it can be a precarious balancing act, and the mistakes can be easy to make here. If you’ve made any horrific mistake, do you think you will continue to make the same mistakes in the future as well?
The scars on your back should be a powerful reminder not to do so again. Won’t you learn from your past errors? One must hope so. Every entrepreneur has faced the situation, where he has met a need to learn from such shocking mistakes.
As a warning to other business builders hoping to celebrate success, here is a list of most significant company-killing mistakes. As a manufacturing business holder, you must avoid them at all costs. Don’t forget that any one of them could be a death knell for your entire business.
Avoid the Root of Every Sin: The Dishonesty
In your everyday business life, you might have come across business leaders who believe in getting desired results by hook or by crook. They lie, cheat, and steal the assets of their employees, vendors, and shareholders.
Knowingly engage in immoral, criminal, and criminal practices and behavior in the pursuit of power, wealth, and bragging. They are conscientious in hiding their misdeeds, hoping to avoid the bright light of honesty and truth.
How often do you see the managers are making a promise to their employee, client, or an investor to learn later that they never intend to keep with their words? Wretchedly, it’s a common occurrence happening there in the United States.
It’s a particular thing that the quickest path to destruction, for both the organizations and individuals, is a manager without honesty and integrity. It’s just a matter of time, too, until such disreputable behavior becomes publically known and results in the collapse of all the enterprise and its people as well.
Developing the Corrupt Culture
If the organizations are mistreating the employees and abusing the customers, it going to ruin their position and cause to be a failure. The companies that are based on the belief “seek to take advantage of relationships, “win-lose” thinking, is never going to prosper nor prosper.
Such a bold and proud approach generally starts with leadership that is greedy and arrogant. Mostly they, in turn, hire and promote the mangers of the same attitude and behavior they are having in them.
Managing the Money Matter in a Poor Way
There is a large number of firms with excellent potential for fame and growth, but they are brought to their knees by the so-called leaders who do not know anything about how to manage their cash.
The worst-case could be there in a company that runs out of money and can’t even make payroll, accounts payable, and make the loan payments. Often, company management doesn’t develop a financial plan that considers three significant scenarios: conservative, expected, or extraordinary performance.
Moreover, they don’t know what to do financially with each situation the company is about to face. Or they make a plan but don’t be able to follow it accordingly. Unfortunately, the moment company leaders learn the company has gone insolvent; it is too late to fix the problem.
The Wretched Revenues
The company that doesn’t manufacture products and generates sufficient sales with appropriate gross margins are destined to fail ultimately. No firm can grow, prosper, or even survive without planned revenue attainments.
If the company has not earned sufficient paying customers, both potential and current, soon they are going to wrap up their business. To survive an enterprise in the long or short term, the economic viability is questionable.
Likewise, if the management has gone clueless on routes to the customer, is not providing a competitive solution to their client that needs and has miscalculated pricing, there is little hope for the survival of the enterprise.
Lack of Training your employees thoroughly
It’s very crucial to train your employees carefully. Training the employee is a target-oriented project that can lead your company to an error-free environment. The best manufacturing companies invest their money and time into training their staff so that the mistakes could be minimized.
On top of the training process, it’s excellent to supply handbooks and use signage to help guide employees. It’s worth noting that any changes to your company could require to train everyone again. So don’t expect employees to operate the latest and brand new machinery and work on brand new processes without a complete briefing.
Targeting Irrelevant Customers
Most of the company leaders who don’t give heed and respond to the primary customer need soon face financial disaster. Miserably, such managers believe all their products are compelling; that they are correctly manufactured and well designed.
They feel there is no need to discuss with their potential customers. They don’t see any reason to innovate to generate new offerings. Generally, they suppose the customers never want to seek improvements or that competitors are never going to surpass them.
They don’t think it necessary to allocate any funds to do new researches. The customers, too, don’t care about their products and don’t buy them as well.
Providing an Awful Customer Service and Support
If the persons, who are sinning on managerial posts, do not take care of customers are destined to ruin the manufacturing business. The leaders who under-deliver and over-promise often watch a steady stream of their unhappy customers heading for the door.
While also sharing their reviews and telling their friends to shop elsewhere. The authority persons, who abuse, mistreat, and disrespect customers are never going to see the happy face of success.
The organizations that prefer to be engaged with one extensive customer are always at high risk. This attitude assumes that the predominant clients are representing more than 50% of company revenues.
You’ll see many companies, which are declaring bankruptcy when the big buyer pursue another strategic direction or choose another vendor. In either case, these small manufacturers could not recover the massive loss of revenue and were unable to survive their business.
Nonexistence of Vision and Strategy
When leaders don’t want to understand why the company exists, or have a knowledgeable and clear view of what their organization can become and how to achieve the goal, the company is not sure to be survived.
This could be referred to as a firm having the wrong people at the helm. They can change direction frequently and hope to find their way. And hesitate, meet continually seeking for the answers that don’t arrive.
They make hard efforts but are innocent in most ways. And go lost, unfortunately, don’t realize it. They don’t even know that they are aboard a ship that’s going to collide with an upcoming iceberg.
Lack of Priorities and Processes
The manufacturing companies that fail often don’t have any key objectives. Furthermore, they feel and need to develop any repeatable steps to accomplish the core tasks. These key persons or so-called managers engage themselves in such stupid and meaningless activities that lead the company to a blind alley.
Their gestures and motions do not represent any progress. Their employees are also not productive and generate desired results. They look busy, but mostly achieve nothing. Without concise, thoughtful, and transparent written processes, the employees commit errors waste company time and lose the money. The lack of efficiency is another worst mistake, the companies unknowingly own.
If the organization is hiring the people, who don’t fit within the job, can kill the organization. They are not competent, the tasks assigned to them won’t be accomplished at all. If they do not fit with exceptional company culture, they could be detrimental and disruptive.
They are shirk-workers and dishonest, they will lie and steal. If they are not happy with company policies, they will ultimately abuse your customers and fellow employees.
And if they are not capable of growing professionally, they are not going to contribute and improve to the organization. Finally, if they are not satisfied and committed to the company, they are soon leaving leave you in the near term.
There might be, of course, various other factors that also contribute to manufacturing business ruin. These are the most experienced mistakes to be seen in other ventures.
Don’t hire the staff, who like you or think like you
Flattery always feels good, but it is never going to pay your bills and dues. Seek for the intellectual challenge to your ideas and practice active listening, especially when you are selling your vision.
Be the only decision-maker: the worse mistake
If you are the only person making all the decisions, it doesn’t mean at all that you are making better decisions. For a company that wants to grow, there certainly should be a team to grow, and all the decisions must be delegated.
The smart growth companies always the quality hire decision-makers, but don’t hire more helpers. Even in the initial startup process, you need someone like-minded but complementary in skills to assist you with the startup plans.
It’s good to have someone to keep your spirits up, assess your ideas, and hone your business expertise. Finally, you are recommended to make good use of your Executive Board Members. The few experts who have “been there and done that” can head off several mistakes and suggest a calm recovery plan for the ones you make.
You must resist the ego urge to “go it alone” or to prove yourself that you are smarter than all of your competitors.