Identifying the false start in business can be challenging but this is something you need to be aware of and look out for too
Starting a business comes with many challenges, but of course, it can also be extremely exhilarating. The one thing you’ll find with a number of businesses, is the ‘false start’. Experiencing false start can feel exhilarating for some business owners, as they believe that this is the end of their struggles. However, identifying the false start can be challenging. If you’re a business owner, this is something you need to be aware of and look out for too.
Identifying the false start and how you can avoid them.Click To Tweet
A false start usually begins when a company starts to do a little (or a lot) better. They may land a big client or job, and start really overtaking their competitors. This is when a company can get a little bit lost and start making mistakes and bad decisions. Poor judgement calls are usually made at this point because the owner or owners believe that they’ve done all of the hard work.
Of course, it’s normal and understandable for a company to want to celebrate a big success, but letting it go to your head is the problem! Many of the signs that an entrepreneur is letting a little success getting to their head are the same. When around 3 or more of the following apply, it’s a warning sign.
The Entrepreneur Is Spending Money On Things They Don’t Need
A sign of a false start is nearly always an entrepreneur spending money on things that are not necessary at this point in time. Usually, this is a new car. However, it can be just about anything. They may be spending a lot more time on things like self image, grooming, and expensive clothes. Looking good isn’t a bad thing, but if it’s costing a lot of money then it could impact the business. New office furniture is also something that could crop up. If this is something that will genuinely enhance the business, great! If not, then it’s just satisfying the ego.
The Entrepreneur Is Boasting
If an entrepreneur is running around boasting about achievements and basically screaming, ‘everybody look at me!’ then this is another sign of a false start. It’s natural to want to talk about and celebrate your achievements, but being obnoxious with them is a completely different thing. Being quietly proud is much better at first. Your success will speak for itself.
The Entrepreneur Is Looking For A More Lavish Business Premises
Of course looking to rent an office can be a sensible move when you outgrow your bedroom or living room, however, you need to think carefully about upgrading before you go and do it. A bigger, better office premises will cost you more money to keep and maintain, and you might not be ready for it yet.
The Entrepreneur Is Hiring New Employees Too Quickly
An entrepreneur who is experiencing a false start might just begin to hire new employees really quickly. Once there are more employees than there is a demand for work, problems are going to start.
The Entrepreneur Stops Planning
Planning is the key to the success of any business. Even the ones that have already ‘made it’. If an entrepreneur stops planning and takes their foot off the sales pedal, eventually, problems will present themselves. You can never be too big for your smaller clients! There’s nothing riskier than a business that thinks they’ve made it and stops working.
All of the things listed above are ego based actions, and do not focus on finding ways to enhance the success that a company has already achieved. It’s all too easy to make irrational decisions based on a false sense of security, but you need to be able to take a step back and look at your decisions with clarity. There’s a difference between actions taken to enhance the company and actions taken to satisfy the ego.
Bear in mind that false starts are sometimes natural, e.g., when your company starts out as a dating site and then turns into a wildly successful video content sharing site (YouTube) – companies should always evolve into something that feels right and matches up with where you see your future in business. However, it’s a long term process, and the false starts mentioned above should definitely be avoided!
Making irrational decisions like buying new sports cars, upgrading offices too soon and hiring too many employees might look good from the outside looking in, but this could very well make your business the next false start victim. Leave your thoughts on false starts below!