Many small-business owners have the potential to be highly innovative, but not aware of it. Most think that they are at a disadvantage because they their business is small or it is in a location with little traffic. This is simply not the case. Small business owners have an advantage over big companies because they have the opportunity to understand their customers on a personal level. This factor is a great way for small businesses to innovate their products because they are able to know what their customers want and need. A strong connection with your customers is essential for innovation. Figure out what your customers want. What problems to they have? Are you able to fix the problem? If not, what product or products can you change to help? Be flexible with your strategy and planning. Most small business owners think that innovation involves a great amount of money. That is simply not true. Innovation involves a good idea, ambition and hard work. If you believe in an idea that will improve your business flow don’t discard it. Instead, work and develop that idea. Having a clear direction and the ability to change course immediately if needed are factors that you as a small business owner should include in your business plan.
Whether you are selling or buying a business, it is always wise to get an evaluation before making any transactions. A business evaluation helps you or a potential buyer answer important questions. For example, why does the current owner want to sell the business? Or what type of growth potential does the business have? The following are three reasons why every company needs an evaluation.
Reason 1: Financial Stability
An evaluation will inform you if a business is in sound financial condition. Financial statements provide information on a company’s profitability, equity, available cash, and other financial data that illustrate how well a company is doing. This is very important if you are trying to avoid any debts or liens against it.
Reason 2: Legal Matters
An evaluation can tell you if a business has been under investigation by a government agency or the status of a current investigation.
Reason 3: Clientele
Clients are the most important aspect of any business. Without clients, there is no cash flow. An evaluation informs you about the number of customers a business has on a regular basis and who makes up the market for a particular business. The larger the customer base is the easier it will be to survive the loss of customers, if any.
Here are five of the most common, most concerning reasons that good judgment among teams can falter.
1. Employees Feel Left Behind
Leadership consists of a shared purpose where employees can all see the company’s vision beyond their individual craft and know that they’re part of the team. When employees detach themselves from the company’s set goals they tend to feel that they are not heading in the same direction as the organization. When this happens, the individual begins suppressing the contribution of others.
Often times, employees may attempt to do way more than they can work with in order to . This can lead to stress. Not being able to handle this responsibility. Let your employees know that it is ok to say no. Remember sometimes its about quality not quantity.
3. Copy Cat Effect
The behavior of leaders in a company is reflected on employees. If the influential leaders in your company are not doing what they are supposed to be doing this will reflect on your employees. People are sharp in picking up subtleties and it may affect their judgement.
4. When Competition Gets Ugly
Employees are more likely to engage in unethical behavior when “winners” and “losers” can be easily identified. Winning and losing are directly tied to people’s ego and thus winners feel they are superior. This hostility can be dissolved in an environment that encourages collaboration and a sincere sense of pride for other team members in the company.
5. No Set Company Values
Company values lay the foundation for how your company operates. Employees must know what these values are in order for them to be a unified team.