3 Ways You Are Destroying Your Own Company

A company going down is nothing new because 90% of startups fail within five years. How can your startup be the exception? Your idea might be great and your customers may love you, but if you are indulging in bad entrepreneurial habits, your company will most likely fail.

This guide will explain three ways you might be destroying your own company. Understanding how these mistakes happen could be the difference between failing and becoming a skilled and successful entrepreneur:

1. You are a perfectionist

Perfectionism is never a good thing. The best things in the world have been considered “flawed” because of perfectionists who believe nothing is ever good enough. For entrepreneurs particularly, there are a lot of downsides to being a perfectionist.

The main disadvantage is never being able to delegate. Imagine trying to conduct a B2B lead generation campaign without any help. It would be chaotic and you would soon grind yourself into the ground. Entrepreneurial burnout is a very real threat you need to be aware of.

Perfectionism is sabotaging your business by destroying employee morale. Nobody likes to feel like they’re not good enough. This, however, happens frequently when perfectionists are around because they often focus on faults and ignore the good things.

Break free from perfectionism by learning to let things go. Understand that mistakes can always be rectified later. Imperfect products improved later are what make companies great.

2. You never hire someone based on their strengths

Entrepreneurs should always hire the right person for the right position. So many organizations hire individuals whom they like or have preexisting connections with. Hiring someone based on their strengths is important.

You wouldn’t hire a web developer to help you cash in a structured settlement. You wouldn’t hire a dentist to help you finance bank loans. So why would you hire the wrong person for the job in your company? It makes no sense.

So how do you know you’re hiring someone for the right position?

Begin by looking at the position and considering its most important aspect. Just because someone has experience with answering phones doesn’t mean they should be on your customer service team. For example, if you were hiring a customer service agent, you should look into their experience with customers. Anything else is a bonus.

Hiring the right person for the right position will boost business growth. This is not only more efficient but also a fairer hiring process.

3. You don’t put the money back into the business

It’s easy to feel excited when you start making money for the first time. The problem is a lot of entrepreneurs take this too far by taking money out of the business. The money leaves the company, never to be seen again. And that’s how businesses enter a period of stagnancy.

You should reinvest at least half of what you earn into the company. Hamstringing your company by bleeding it dry is not a good business plan.

Taking money out of the company as the income rises is a nasty habit to get into because this can easily lead to your demands becoming stronger and stronger.

So how do you decide when to put money back into the business?

Look at your own purchases and think about whether you really need them. Look at your business income and consider whether your company has reached a period of stability. During the early years of your business, you will not have a stable income and any chances to increase your capital reserves should be grabbed with both hands.

Tackle bad habits for long-term change

Nobody expects you to make instant changes overnight. But if you’re suffering from these problems, you should tackle them. Making positive change in the lifespan of your company will ensure that you set yourself up for more success in the future.

Don’t attempt to completely change your character in a single day. Take some small steps towards your goals and you’ll find your journey to be far more fruitful. You’ll also prevent any damaging relapses later on.

What do you think is the worst habit an entrepreneur can have?