When you’re planning to launch a business, or building one up from the early days of start up flexibility to long term success, you need to understand the building blocks you’re using. Each decision you take in the early days has effects that stretch a long way into the future: like it or not, you’re not just solving a individual problem, you’re setting a pattern for how your business will solve all such problems in the future.
The most vital tool in your armoury is understanding: understanding what other tools are available to you, the consequences of using them, understanding broad and deep enough for to make the right decisions for your business, if not every time, then enough times.
Today we’re taking a look at some of the most important building blocks you put into your business.
A respect for data is vital and it should be part of the philosophy of your business from day one. Data gathering both within and without gives you the insights you need to inform your decisions and give you the confidence that your decisions lead to good outcomes. You can build the reporting structures that give you feedback on your own business – to gather data on the market at large you may need more help. Click here to learn more about working with a market research agency.
It’s important build processes of reflection and feedback into your business from early on. Not every project or decision is going to turn out well in any business. What defines yours is how you react to the failure. Ignoring it and moving on means learning nothing, and so does making one person a scapegoat for the failure!
Instead, set a good example, and reflect constructively on both successes and failures, identifying the lessons you need to learn and apply next time, without turning it into a cause for recrimination and blame. It might feel good in the moment, but it will lower morale and lead to worse outcomes in the future.
Risk Avoidance and Management
Every decision you take when you’re running a business comes with risk. Almost anything you do could go wrong in some way, exposing you to the risk of losing revenue, legal problems or negative publicity, among other things.
That doesn’t mean you should be paralysed! Understanding and managing the risk means you know just what you’re getting yourself into and can plan to avoid the worst outcomes, and ensure you’re making an informed decision.
Giving risk management a voice and authority shows your entire company you take it seriously and should filter those values down to all the teams working under you.