2011/10/26

What if your business is not making it? - Small Biz Survival

What if your business is not making it?

Posted: 26 Oct 2011 04:30 AM PDT

Sometimes I ask the hard questions or make the hard points. This is one of those times.

Photo by my friend Gloria Bell.

If your business is not making it, then it is time to change something.

Let me share a couple of examples.

But I Can't Afford To! Part 1
When I suggested small business people delegate some tasks, one response I got was:

Delegate to whom? Most of the small business owners and farmers I know are owner operators and hire folks on an as needed basis. We have no full or even part time labor other than ourselves.

If you can, grow that business. Then let it hire, either on payroll or on contract as appropriate. You may have to change your thinking. If you have an "I'll do it all myself" attitude, you better change it.

Certainly, there are ways to get by for a while. Here are 10 ways to delegate without hiring, for example. But that doesn't mean you keep limping along forever. If you can't grow the business up to the point it can pay for its own help, then that business is a candidate to abandon.

But I Can't Afford To! Part 2
In another conversation, I talked about how freelancers could draw the line between what to give away and what to charge for. The discussion veered off with this comment:

How about entrepreneuers that can't afford to pay someone?

If you really can't afford to pay anyone, you need to fix your business, and fast. I realize that every entrepreneur has to be frugal, and we all go through rough patches. However, we hold on to a "can't afford to" mindset much longer than we should. We end up spending our $100 per hour time doing $25 per hour work.

Sounds harsh, I know. Sometimes reality is harsh.

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