by Michael Iverson
Several years ago, I read an article about things in everyday life that most people do incorrectly. In many instances, it’s simply because that’s the way they’ve always done them.
For example, would you believe that only 5 percent of all Americans wash their hands correctly? The correct way involves 20 seconds of vigorous rubbing with soap and water. Although soap and water are parts of the routine, only 5 to 10 seconds of washing is the norm. But, washing the right way lessens your chances of contracting flu and other illnesses.
It seems that some of the instruction we get at various points in life is of dubious value. One of my favorite quotes is from the great American author Mark Twain. “It isn’t what you don’t know that gets you into trouble. It’s what you know for sure that just isn’t so.”
People tend to latch onto an idea, often learned at a young age, and never let go of it. They believe it to be the truth, and it’s extremely difficult to convince them otherwise – even when the evidence against their idea is overwhelming.
If you like the idea of constant improvement, as most entrepreneurs do, you have to keep an open mind and re-examine notions about the things you do daily.
What you re-examine might be age-dependent
So, what are the things you do every day in your business that ought to be reexamined? The answer can depend on how long you have been in business.
Business owners in their fifties came into business in an entirely different economic and technology environment than we have today. Many notions about avoidance of debt are rooted in the double-digit interest rate environment of the 1980s. Obviously, the interest rate scenario has changed greatly, meaning carrying debt is less of an issue than when they got started in business.
Some owners in their fifties are also slow to update websites because of outdated ideas about the costs involved. Website development costs are significantly lower than they were just a few years ago. If an owner has been putting off a refresh of capital or technology, it’s time to revisit these issues.
Many business owners in their forties will benefit from paying more attention to accounting and legal issues. In their early years of business, most entrepreneurs are pretty casual about their business relationships. At this stage of your business life, the stakes are a bit higher; it’s time to put your important business agreements in writing.
For example, did you choose to operate as a proprietorship because it was the cheap and easy choice to make ten years ago? You might want to revisit the matter depending on your goals. If you are worried about scaling a company and limiting your liability, a Limited Liability Company, S-Corp. or C-Corp would be the better choice. A proprietorship is unlimited liability. Also, it might make sense, now, to take a course in accounting from a local college. It’s hard to achieve peak performance unless you are well-versed in how to keep score and the numbers in business is how you measure winning from losing.
As you re-examine your business make sure that you have a written plan with strategies and numbers. A plan helps provide important guidepost for making decisions about the business, or to explain your thought process, and your vision to employees and business partners. The plan does not have to be a 100-page novel. As a matter of fact, good plans can be one or a few pages of well thought out information and numbers. Being concise and clear with your vision can help you execute and iterate faster.