There is a typical trait of small businesses – they eke out sustainability by cutting costs and overhead in the name of optimization. This helps them to get an immediate relief from certain expenses but that does not tame the root cause. At times small businesses starve itself by this regular act of cost optimisation.
Here we will take on 3 myths that prevail in small business that leads them to take unyielding decisions.
- The Myth that technology is an over kill – Anything that disrupts the normal flow of operation is scary. This is much scarier for small businesses. Even when the change or disruption is for betterment, it is difficult for small business to imbibe due to the lack of training, or limited capability of work force etc. To immediately resolve this disruption small business rolls backs any change done for betterment. This mindset inhibits them to scale up the business. When the time comes and they find that embracing technology is the only way forward, it may be too late for small business to transform.
- The Myth of Predicting the pattern – Small businesses are mostly owner driven businesses and hence decision making is a quick process. A lot of the “quick” part is also the attribute of the culture of ignoring data. As human nature we predict pattern, and is also true in businesses. We predict pattern based on some recent influence and take decisions.The challenge comes when we have to take strategic steps. Small businesses would again go by predicting patterns without referring to data. A lot is to be blamed to the mindset where we thing these data driven process implementation are costly and meant for big businesses only. We fail to understand that without data we miss out on understanding our customers. The fact is data solutions are now charged in “per use” basis or SAAS model that makes the implementation of such processes affordable.
- The Myth of the Golden Era – When the going gets tough then the tough gets us going. But when the going gets comfortable then the comfort impedes the growth. This is something that goes well with businesses as well. This is called the Golden Era when small businesses find the sales are moving good and the profit margin is high and customers are coming effortlessly. And then there is tendency to believe that this Golden Era is permanent. The fact is that in today’s era change is itself the ecosystem. And when we start believing that this golden era is going to stay forever we make the biggest mistake.
The Golden era gives us an opportunity to invest on the customer. While businesses strive to sustain the current tough times, the Golden era lets us do more – to focus on future. One can plan to get to new geographies, or start a new line, or widen the effective reach, invest in technology, customer profiling, etc.
Businesses that put their effort into growth during good times are the one that can sail through the tougher times.