3 leadership mistakes most new business owners make

I’ll be the first to admit – I’ve made countless leadership mistakes throughout my career. As a person who’s owned loads of businesses and managed hundreds of people, mistakes are bound to happen. But the sign of a true leader is learning from them, and growing from them.

As a small business owner, you want to grow your company and see it flourish. If you are going to stay on in a leadership position, rather than relegating that role to someone specifically hired for it, you’re going to have a lot of opportunities to fail as a leader.

Many business owners are amazing as founders, but they are terrible as managers and leaders. If you’re one of these people, it may be better to recognize this early and step down now, rather than letting your company suffer for it. Your place in the business may be as a silent partner, or it may be time to sell your start-up and move on to the next new business venture.

On the other hand, you may have what it takes to be a great leader, but you just need a little bit of guidance through the pitfalls. So, here are some common mistakes that small business owners make and how to avoid them

Hiring the First Person in the Door

Launching a new business venture is not easy, and there’s a lot of pressure to get up and running quickly. A lot of business owners make the mistake of hiring one of the very first candidates they meet. It’s understandable; you’re under a lot of pressure, and you think something like, “This person meets most of my criteria and can start tomorrow. Am I really going to find someone better before tomorrow?”

Well, you might not find someone better before tomorrow, but you might very well find someone better before next week or the week after that. So, especially in the beginning, as your company is just getting its footing, and your staff are just getting into the groove of things, take a little extra time and really consider all of your candidates. Don’t hire anyone who’s almost good enough. Don’t settle for mediocre talent. Instead, wait just a little bit longer and find the best talent in your area.

Failing To Delegate

What is your job? If you can’t answer that question simply and quickly, you have a problem. If you’re constantly switching modes – between sales, management, development, etc. – it’s past time to do some delegating. If you don’t, you’re going to spread yourself too thin, and all of your tasks will suffer.

Instead, focus on the parts of your job that you really excel at. Are you the face of your company? Do you personally meet with new clients? Then you need to focus on this and delegate managerial duties to someone else in your company.
If you find that your time is best spent leading your crew, then it’s time to hire some account managers and sales staff while you focus on developing your team. It’s really up to you what you delegate; that’s why you’re the boss.

Not Communicating Enough

You may have a great vision for your company and where it’s going, but does your team know that? Do the people you work with and who work for you have a good idea of where they stand in the greater scheme of things?

It’s very easy to get caught up in closing with clients, managing daily tasks, and keeping everything running, but you absolutely need to make the time to communicate with your employees. Let them know what they’re doing right and how it affects the overall arch of the company’s trajectory. Keep them updated on what’s going on in the organization as a whole.

If you hire only people you’re excited to work with, delegate tasks and jobs appropriately, and keep in communication with your employees, you’ll be on your way to being a fantastic leader of a successful business.

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What should your first steps be in building a new business?

As a woman who’s owned nearly a hundred businesses in my career, I know a thing or two about starting them and putting them on the path for success.

Almost everyone has an idea for a new business or enjoys thinking about what it would be like to start their own. Succeeding with a new business, however, takes more than just the initial idea or even ambition. While a lot certainly goes into both starting a business and seeing it succeed, that first step is crucial. Here’s how to make sure you take one in the right direction.

Contrary to what many people believe, success with a new business doesn’t begin with thinking about that perfect product or service. Rather, it starts with considering that primary problem or need. Entrepreneurs have failed countless times because they invented that perfect product or service that no one actually needed. You’ll be much better off if you begin by considering problems people regularly face and then solving them with something you can sell.

As much as possible, test this idea before going all in. While there are no guarantees, if you can’t sell your product to three people, it’s unlikely you’ll be able to market it to 300.

Usually, people take their business’ first steps with others. This can mean investors, business partners or just friends and family. No matter who those people are, it’s important they share your values and goals. Too many businesses have been doomed from the start because those involved were naysayers. Instead, be sure the team you’ve established are positive-minded people who all believe in your company just as much as you do. This is important for many reasons, not the least of which is because the early days of a company can be especially tough, and you’ll want people who will support you.

Every new business starts with a plan. For many, it means certain milestones they hope to hit, how they’ll hit them, and the deadline for doing so. Successful businesses, though, involve plans that consider how much it will cost to hit each milestone and how to pay for them. No matter how much success you achieve at first, your new business won’t get very far if you wind up in debt. In fact, debt is a great way to bring your dream to a close early on.

The road to success is certainly a long one for any business, but that doesn’t mean it has to be full of challenges. Start out on the right foot and you’ll ensure yourself a much easier trip on your path to success.

How to hire the best team

A lot goes into building and running a successful company.

There is startup capital, continued investment, sales, marketing, accounting … you can go crazy thinking about everything that’s involved in a good company. Of course, you also need to have a valuable product or service.

However, NO company can succeed without the right people behind it. You need a GREAT team to run a GREAT business.

While you can do everything to train the right people, starting at the hiring process will make things much easier. Here is how to ensure you hire the right people to begin with.

This might seem like obvious advice, but it all starts with competency. Does a prospective employee come with the ideal skill set? Many of us like to believe that everyone has the same amount of potential and that any trait can be taught. Maybe this is even true. If you hire someone who doesn’t come with the background you desire, though, you’ll only be making more work for yourself.

Nancy Matthews from the Women’s Prosperity Network has been an unbelievable alumni of my Big Table program … & a great partner in my worldwide team!

Part of this means compatibility. There’s a lot to be said for someone’s personality. Sometimes people have the degree and/or background you want, but simply aren’t good at taking direction, working well with others or accepting new challenges. Eventually, these people become more of a burden than a benefit.

You also want to make sure your new employee wholeheartedly accepts the salary and benefits you offer them. In this economy, it can be easy to think that anyone should be happy with what they get. Unfortunately, this attitude can lead to employees who underperform or are constantly on the lookout to jump ship.

Neither is going to help your company in the long run.

Most everyone lists references when they apply for a job, but how many companies actually check up on them? It’s important that you do so. Many times, references sign up for the job because they feel pressured to do so. This might mean they won’t actually endorse the candidate when you call them. Other times, the reference isn’t aware of the types of jobs for which their former employee or acquaintance is applying.

Either way, it’s worth your while to not just check up on references, but also drill them for honest answers. Tell them what your company does and the type of candidate you’re looking to hire. Then spend some time ascertaining whether or not the person you’re inquiring about is a match.

Hiring new people is easy if you don’t keep the above standards. Unfortunately, this is a great way to surround yourself with the wrong type of people. So consider the advice in this article to ensure you hire people who will help your company achieve its goals.

How to ask for a raise – and actually get it

Note: If you truly want to live a happier life in the occupational phase of your life, you NEED to become an entrepreneur! If you don’t know how to get started, this is a good place to start. BUT … if you absolutely have to stay at your W-2 job, here is a good outline of how to go about asking for more money.

No matter how much you’re currently making at your job, chances are you wouldn’t mind making even more.

However, for some of us, a pay raise is a very real need. Perhaps you’ve started a family or have debts you need to pay down. Whatever the reason, asking for a raise is rarely an easy thing. If you do it right, however, it can be an extremely rewarding one.

Before you ask for a raise, get an idea of how much money you’re actually worth. Missing the mark on either side will not end well for you. Ask for too little of a raise and you might actually get it, only to be disappointed later. It will also let your employers know that you are clueless about your actual value. On the other hand, if you ask for too much, you’ll be all but guaranteed a flat “no.”

Keep in mind that just because you’re worth a certain amount doesn’t mean the company will give it to you. They may not be able to afford it, for one. It might also be that what you’re worth on the open market isn’t what you’re worth to them. So be sure a large part of your research is figuring out what you’re actually worth to your current employer.

Once you know how much you’re worth, ask for it.

Don’t ask for less out of some sense of modesty. Just make sure your request includes a rationalization. Explain how you came to the final number. Then confidently seek that amount. If you mince words or otherwise show you’re not sure about your value, don’t expect an employer to do you any favors.

Many people go too far in their attempt at convincing an employer they’re worth extra money. We’ve all heard horror stories about someone threatening to quit. Don’t become one of those yourself. Even if you get the raise you wanted, providing any type of ultimatum will most likely not go over well with your boss. You should fully expect that your new salary, and time with the company, is limited, as they no longer feel they can rely on you.

Lastly, practice making your pitch. Practice it over and over until it sounds natural. Then ask for your raise as soon as possible. The longer you put it off, the harder it will be. Plus, if someone beats you to the chase, your chance at success just dropped.

Requesting a raise can seem difficult, but not if you adhere to the above advice. By dedicating yourself to this goal, you’ll be guaranteed a much better shot at success, which could mean more money in your pocket.

Take risks or stay the same

Thought of the day for all of my fellow entrepreneurs out there…

I’ve met with a TON of aspiring & existing entrepreneurs and others seeking financial freedom. People are always excited at the prospect of becoming their own boss, living a life they love, and “never working another day.”

This all sounds great (& is true), but I’ve got a newsflash for you:

ALL successful people have 3 things in common: Motivation, ability and opportunity. So, to succeed, we need hard work, talent & good luck.

Here’s the point of my post: A lot of you are willing to work hard and a lot of you are very bright … but many of you aren’t willing to take new opportunities.

A lot of you aren’t willing to take calculated risks.

A lot of you aren’t willing to put your money where your mouth is to take your business and life to the next level.

A lot of you aren’t willing to take a step into darkness simply because you’re uncomfortable with it …

To that I say, fine. Stay the same. Earn the same check. Live the same life. Stay where you are.

Good luck with that.

But for those of us who have taken the risks (some good, some bad) and seen the life-changing results … can I just say that, MAN, IT FEELS GREAT TO BE ON THE OTHER SIDE!

Trust me, not everything will go your way and not every strategy will result in millions of dollars … but when opportunity knocks at your door, are you going to peek through the window, turn off the lights and stay quiet until it goes away … or are you going to take a deep breath, open the door and say, “I’m ready.”?

…

Take that next step.

Launching your own company 101

Is 2014 going to be the year you finally start your own company?

It’s about time! 😉

If so, you probably already have a ton of ideas in terms of your product or service, business name and even how to market yourself.

What you might lack, however, is the knowledge about the actual steps you need to take in order to get this idea from inside your head into reality.

All serious ideas for a business need to begin with a business plan. Until you handle this part, your idea is still a fantasy, at best. There are a number of tools online that can assist you, but the general idea is that you want to map out what it will take to “open your doors” and begin selling a product or service for a profit.

One of the easiest ways to do this is by hiring a freelancer online. Find someone with the experience you may be lacking and pay them to create a business plan for you.

When they finish, you’ll have a roadmap for launching your company.

A major obstacle every business has to deal with is raising capital. It always costs money to make money, no matter what kind of company you’re hoping to start. Fortunately, in the digital age, it’s easier than ever to get a business up and running with minimal funding. If it’s going to take more than you have at the moment, consider speaking with your bank or borrowing the money from friends and family. There are also a number of options online for raising funds from interested parties, as well.

Depending on the nature of your business, you’ll need to designate it as a sole proprietorship, partnership, S corporation, corporation, Limited Liability Company (LLC), cooperative or nonprofit. Learn about each one and then choose whichever is best for you (usually an LLC). This decision will affect many things, especially those pertaining to taxes.

Speaking of which, you’ll need to find out which tax ID number you need from your state revenue agency and the IRS. Then, register with them for taxes. This step will also award you unemployment benefits if they ever become necessary, workers’ compensation and more.

Usually, when you first start out, you or your family will be the only employees working for the business. As that changes, however, you’ll need to be sure you understand your responsibilities as an employer.

Even though a lot goes into launching a successful business, don’t let the above intimidate you. Everyone has to go through it and it’s actually easier than it seems (trust me … I’ve started a plethora of ’em!).

Common mistakes people make when delegating

One of the keys to being a good leader is knowing when to hand off some of your responsibilities to a subordinate.

This is the art of delegation (much harder than it sounds for entrepreneurs!).

However, while the premise can seem simple enough and it’s certainly an attractive prospect, there are some common mistakes you’ll want to avoid in order to get the most from your delegating.

You simply can’t expect that your delegating efforts will go well if you aren’t positive that you and your employee are on the same page. Even your most competent subordinate isn’t a mind reader, so before you hand over a task to them, be sure they understand not just what it entails, but what a successful outcome will look like.

Delegating often gets a bad name because many people see it as a way to simply shirk responsibility.

Unfortunately, they’re often right. Other times, you can’t blame them for having that perspective, even though they may be mistaken. Successful delegating doesn’t mean handing over a job to someone and then checking in when it’s all over. You need to monitor constantly to ensure progress is headed in the right direction. Even with this added work, delegation will save you substantial time in the long run.

Many people hit the other extreme when it comes to their delegating mistakes. They delegate a task, but never really let it go. In the end, they can actually end up creating more work for themselves because they’re still handling the responsibility as well as micromanaging. No one is better off with this type of arrangement.

Don’t delegate to someone who isn’t ready, either. In a pinch, it can be tempting to do so, but you’ll end up with subpar results and a potentially trying experience altogether. Other times, you may consider delegating as a way to test an employee’s current abilities. Instead, have them observe a more qualified candidate when you delegate to them and find other ways of testing their competence in the meantime. Delegating is only to be done with those people you know can succeed.

Lastly, one of the biggest mistakes people make where delegating is concerned is simply not doing it. It can be helpful to delegate tasks even when you don’t need to. This way your staff gets the practice they need so they’ll achieve when the chips are down.

Plus, the more you do it, the more comfortable you’ll become with the process, as well.

When done right, delegating can be one of your best friends – and you have to learn how to delegate properly if you want your business to expand.

However, when done wrong (or not at all), you’ll wind up paying for it. So consider the above mistakes people commonly make to get more from your delegating.

LBT 100 – Huge Moment For Live Out Loud Community

Can’t believe it’s almost here…

Almost 2 decades ago, I started my Big Table program as a way to do everything I could to help aspiring, up-and-coming & experienced entrepreneurs create and expand their businesses. Through the years, I’ve been able to assemble an unbelievable array of skilled experts in key disciplines that every successful company & wealth-builder requires (such as leadership, marketing, sales, tax strategies, investment strategies, real estate, accounting, management & HR, just to name a few).

Thousands of people worldwide have gone through my Big Table program and tremendously accelerated their business as a result of it. It’s guided business owners to get more of what mostly everyone wants – time & money. It’s THE place to be for entrepreneurs – I’ve no doubt about that.

Each business owner who has gone through LBT has been a part of a “session.” This “session” pretty much denotes what “class” they’re in. So far, sessions 1-99 have gone off without a hitch.

The LBT program has grown & grown & grown thanks to the amazing instructors, coaches, & mentors I have on board, but most of all, thanks to the courageous & brave entrepreneurs who have graduated from the program…

And now, almost 2 decades later, we’re here – LBT 100! This Monday & Tuesday (June 23 & 24) is my LBT 100, and I CAN BARELY HOLD IN MY EXCITEMENT!

To top everything off, MY BIRTHDAY is on Tuesday, June 24…it’s going to be an amazing time!!!!!

This is such a huge accomplishment, not only for Live Out Loud, but for every single person who has played any role in our Big Table program. The instructors, the entrepreneurs, the discussion leaders, my staff – everyone has had a hand in building this from the ground up, & I’m very blessed to say that we’ve reached No. 100.

Amazing times…& amazingly blessed. Can’t wait!!!!!!

https://www.prweb.com/releases/2014/06/prweb11956956.htm

Hiring the First Person in the Door

Failing To Delegate

Not Communicating Enough

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