Ian is an entrepreneur, Founder and CEO of Ledgr, a national subscription corporate accounting service and business advisory company.
As the founder of a business services company, I’ve spent countless hours consulting with more than 1,000 small-business owners to sell our services. In my sales approach, though, rather than narrowly focusing on how their business relates to my service offerings, I dive deep into their operations. The ups, the downs, personnel issues, software choices, systems, recommended reading—we uncover it all. This process is like looking under the rug for every business that we engage with. Over the years, these conversations have broadened my understanding of businesses across almost every industry and revenue model. From this treasure trove of information, I’ve gathered some fascinating insights. Here are five lessons I’ve learned.
Rethinking Innovation
The first lesson is rather counterintuitive: You don’t have to be innovative to be successful. Many entrepreneurs operate in saturated markets and still find their way to success, either by outpacing competitors or through sheer determination. In some industries, the market is large enough that even with intense competition, the pie is still big enough for everyone to have a slice.
The Million Dollar Milestone
I learned there’s a significant operational difference between businesses earning under $500,000 annually and those exceeding $1 million. Until the latter threshold, the entrepreneur can often micromanage their way to stability. However, the cost is typically their time and sanity. To break the $1 million barrier, effective delegation is crucial. You must trust your team and have systems in place that function without your constant supervision. This is a significant hurdle for many business owners and explains why so many businesses plateau at the $1 million mark.
The Real Definition Of Culture
I’ve found that culture isn’t about ping-pong tables or kegerators in the office. It’s about leadership behavior. The focus, passion, preparedness and respect demonstrated by the leadership team are what truly define a company’s culture. It’s not about demographics. It’s about attitude. So next time you think about your company’s culture, remember it’s your behaviors, not your office amenities, that make the real difference.
The Importance Of Aligning Incentives
As a CEO, aligning incentives is a top priority. If one department’s goals are conflicting with another’s, problems will inevitably arise. It’s vital to ensure that all your teams are pulling in the same direction. Once you achieve this alignment, employees, customers, investors and you can all benefit. The harmony created when everyone’s incentives align is my definition of success.
Embracing Imperfect Action
In my experience, the entrepreneurs who struggle the most are not those making incorrect decisions but those who are paralyzed by indecision. It’s not about making the perfect move. It’s about making a move. Any step forward, no matter how small, is better than standing still.
In the whirlwind world of entrepreneurship, success comes in all shapes and sizes. The lessons outlined above offer a glimpse into the realities and challenges faced by small businesses. They serve as a reminder that there’s no one-size-fits-all formula for success. Each conversation with a small business owner adds another layer to my understanding, enriches my perspective and reinforces the diverse nature of entrepreneurship. The process of learning never ends, and I hope these insights inspire you to embrace the journey and make your next move, however imperfect it may be.
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