Many people don’t like to hear the truth about themselves, especially if this truth showcases weaknesses, shortcomings and downfalls. We all want to listen to words like “you are your own boss,” “you are in control of things,” and “you are one step closer to personal freedom”.
But while being a businessperson comes with many perks, sometimes our very own behaviours can be a liability to the businesses we are trying to build. Your habits could be the ones causing your business not to grow.
Here are five notorious personal habits that are common and ones that could be taking a toll on your many years of hard work.
1. Mixing Business with Friendship
If you struggle to maintain boundaries between family, friends and business, then you are likely to have a difficult time managing your business. Likewise, I am sure you have heard of the old quote, “Mix women with business and you will see dust”.
While that quote may sound sexist, it passes a vital message. If every time you secure a government tender, you rush to get a second wife or the so-called “side dish” and vice versa, then chances are that you will not go far as a businessperson.
It all boils down to self-discipline and the ability to draw the line between the good and the bad. Just because personal freedom is a perk that comes with entrepreneurship doesn’t mean you have the right to over-indulge. Moderation is key.
2. Withdrawing Capital for Personal Expenses
Most people get into business thinking it will solve all their personal finance problems. They get into it to sustain a lifestyle their white-collar or blue-collar job could not cater for.
While there is nothing wrong with having a strong monetary motive for getting into business, withdrawing money recklessly from your business account just because your girlfriend has been pushing you to take her to Dubai for shopping is a big no-no.
The problem with being in business is that no one will limit you or dictate how you handle cash. But restricting your access to money is imperative if you want to make meaningful progress.
An excellent way to go about it is by regarding yourself as an employee of your company, whereby you earn a regular salary. It may sound like a retrogressive approach, but it can help you stabilize your cash flow, especially at the early stages of growth.
3. Bad character
I am not here to lecture you on how to behave, but if your character is the only thing standing between you and your success, then we have to discuss it. How refined are your manners? Are you the kind of boss who always scolds your employees in the presence of customers? Are you the type that always runs away with suppliers’ money? Are you the type that writes bouncing cheques and then switches off the phone? Or you are the kind that cannot work without smoking cigarettes or drinking one for the road.
No matter how ratchet your personal life is, don’t let that burden your business. Consider hiring an image consultant. Better still, invest in structures whereby someone else can handle delicate things like customer care, accounts and debt collection.
4. Lack of Trust in Delegating Responsibilities
Almost everyone makes this mistake in one way or another. We sometimes get too possessive of our business to the extent that we run everything from our handbags or briefcases.
You want to avoid anybody else handling the cash because you think they will misappropriate it.
You don’t want anybody else to make key decisions in your company because you want to feel like you are in control of things. Therein lies the problem with most businesses. That’s why we only have a few businesses that have been handed down across generations for decades.
When the founder dies, he goes with all his ideas, and the company collapses. Isn’t that what happens? You must realize that the business is more significant than your ego and insecurities. The world’s best companies of our time are the ones in which the founder invests in other people and lets them play a role in organizational growth
5. Avoiding loans
We all grew up listening to horror stories about loans. How Mr. So and So took a loan to start a dairy farm only for his business to be auctioned and left bankrupt. Or How Mrs So and So developed high blood pressure due to the frequent sighting of debt collectors near her village shop.
Whereas these stories are valid and should not be ignored, not all loans are bad. You only need to take them for the right reason and with the right motive. Sometimes, a bit of loan financing is all it takes to overcome those primary cash-flow challenges that cause 80% of start-ups to fold up in less than two years.
Final Word
As Warren Buffet once put it, chains of habits are too light to be felt until they are too heavy to be broken. So, could your habits be getting in the way of your business success, but you are too busy to notice? By addressing these common pitfalls, entrepreneurs can pave the way for sustained growth and long-term success in the competitive business landscape.