There are always going to be challenges and setbacks in business. It’s par for the course, however, the difference between a business birdie and a business bogie is in how you deal with what is happening. It’s about having the ability to see when things are off course and being willing to adapt and correct the path. Even more important perhaps is the willingness to ask for help, take advice, and then act on it.
So many business owners fall into the trap of not acting and instead trying to turn a blind eye when things are not going as planned. The most disheartening part of this, as a business that provides advice, is that so many problems can be fixed if they are dealt with as they arise.
Problems don’t tend to fix themselves and ignoring them makes the consequences worse most of the time. In the long run, facing problems is less stressful than trying to avoid them or solve them alone.
The risk of not dealing with business problems in a timely manner
An operational hiccup or a customer complaint can snowball if not managed. The same goes for problems meeting costs and other obligations.
Damaged reputation: The reputation of a business can be its biggest asset, however, if things go wrong it can also be its downfall. Supply issues, financial problems, operational shortfalls, poor documentation, and products or services that don’t meet the necessary standards can all lead to a loss of reputation. Once the reputation of a business is damaged it is very difficult to rebuild it and even if successful it can be a slow and expensive process.
Financial consequences: Be it mounting debt, mismanagement, or a cash flow crisis, ignoring financial red flags can lead to big problems. If things get completely out of hand, ignoring these types of issues can lead to insolvency and bankruptcy. The earlier you seek advice the greater chance you have of being able to fix things. The longer you wait, the less options will be available.
Lost opportunities: Ignoring problems can cause businesses to miss out on growth opportunities. Whether it’s failing to adapt to changing market trends, neglecting innovation, or not addressing operational inefficiencies, businesses that do not proactively address issues are more likely to stagnate and lose ground to competitors.
Employee morale and staff turnover: Employees are always aware when things are not going well in the workplace. No one needs to tell them, they hear things and see things. Internal issues within a business can lead to increased employee turnover, decreased productivity, and ultimately, a negative impact on the bottom line.
Why facing business problems is easier than ignoring them
Have you ever noticed that there are so many services for businesses that need to address problems and there are no services out there that will help businesses ignore problems? It sounds silly, yet business owners so often avoid issues until they are forced to face them. By this time, things are usually out of hand. There is help available in the form of corporate advisory services, small business restructuring, and many other options that can give valuable advice.
Early intervention is cost-effective: Early intervention is better for stress levels and the pocket. Addressing issues when they are still manageable allows for cost-effective solutions. For instance, dealing with a production problem before it disrupts the entire supply chain is far less expensive than fixing the resulting supply chain crisis. Or, dealing with debt that is becoming unmanageable is much better than waiting until there are no options left besides the unpleasant ones.
Encourage innovation; empower employees: Facing problems head-on fosters a culture of innovation and continuous improvement within a business. When employees are encouraged to identify and solve problems, it can lead to the development of creative solutions and more efficient processes. In contrast, ignoring problems stifles innovation and maintains the status quo.
Fosters learning and growth: Every challenge in business presents an opportunity for learning and growth. By seeking help and addressing problems, businesses can learn from their mistakes, develop new skills, and adapt to changing circumstances. By continuously learning and adapting, a business is becoming antifragile by design.
Builds resilience: Businesses that face problems head-on tend to be more resilient. They develop the ability to weather storms, recover from setbacks, and emerge stronger. This resilience is a valuable asset, especially in industries prone to disruption and change.
Getting good advice and moving forward with success
The most effective way to address a problem is to seek help from experts and professionals. At Rodgers Reidy, it is our goal to rescue a company or an individual and return them to commercial viability. It is always our first priority to save a business and we work tirelessly to ensure that those who come to us for help, return to doing what they are good at.