The Trials and Tribulations of Running a Business

Business owners deal with stress, anxiety and uncertainty on a daily basis.  Owning and operating a business can be one of the most stressful experiences a person can endure.  Why would anyone torture themselves like this?  Money, being your own boss, having the flexibility of being creative at work and doing your own thing…maybe all of the above?  For as difficult as it is to run a business, most business owners find it difficult to work for someone else again after being their own boss.

How can a business owner avoid all of these uncomfortable feelings that are undoubtedly caused by things going wrong?  It’s probably unavoidable to a certain extent but I believe some problems can be minimized.  I believe a good part of it has to do with sharpening our ability to be strategic.  Have you ever looked up the meaning of the word, “Strategy”? I have.  Once source describes strategy as a plan, method, or series of maneuvers for obtaining a specific goal or result.  Another way to look at it from a business perspective is being able to predict the future by utilizing logic and past events as to position yourself in such a way that your chances of success are greater.

Logic is a very fluid term.  What seems logical to one person might not to another.  In addition, what seems logical to us at one point in time might not seem logical at another point.  Intuition allows us the ability to foresee problematic situations before they occur.  History allows us to learn from others so that we don’t make the same mistakes they did.  Business consultants earn a living by forewarning their clients of mistakes they or other people have made in business so their clients don’t have to endure the agony of repeating them.  Let’s take a look at some key factors that could help mitigate disaster.

Ego

There’s no place in business for an overinflated ego.  If you’re the business owner, you’re the boss and there’s no need to prove it to your employees.  They already know.  Overly asserting your dominance will make you appear like a jackass and your employees will hate you.  It’s also unprofessional.  You may think bullying your employees will make them fear you but you will get a lot more out of them if they respect you.

Trust

Most employees view their job as a way to trade time for money.  They don’t equate their salary as payment for working.  They simply believe their mere presence warrants a paycheck and the Department of Labor looks at it the same way.  Many employees think they work hard but in reality, they really don’t.  Some do but the 80/20 rule suggests that 20% of the employees within a company actually do 80% of the work. What are the other 80% of your employees doing?  Basically wasting time on the internet, texting, at the water cooler, outside taking a cigarette break, making coffee, staring off into space or looking as if they’re working but they’re really not.

At the end of the day, many employees feel entitled.  If they get too comfortable, they will begin to feel as if their workspace belongs to them and start to wonder what the company can do for them or wonder why the company isn’t giving them more.  It will be up to you or management to make them understand that employees are there to assist the owner to run his/her business.  It seems simple but a lot of people lose sight of this fact.

If employees begin to feel as if they are underappreciated, they may behave in a number of different ways.  They can be resentful which may lead to them working with less enthusiasm, or they can steal.  They could steal money, inventory, office supplies, time, clients, etc.  They may not look at it as stealing in their warped perception of reality.  They may simply view it as taking what they feel is owed to them.  It’s important to be cognizant of this and know that it happens frequently at many companies.

How do you avoid this complication?  One way is to just keep a closer eye on your employees or at least have your managers be more aware.  Many times employees don’t even need much to make them feel more appreciated.  There are ways of accomplishing this without it costing much money.  Implementing a casual Friday, giving employees a paid day off for their birthday, having a Christmas party, putting a vending machine, water cooler or coffee pot in the lunch room, 401(k) or health benefits, etc.  Little things like these go a long way.

Policy and Procedure Manual

Every office needs rules but those rules need to be defined and stated clearly for all employees to be aware of.  A Policy and Procedure manual can dictate any rule you want as long as it’s compliant with Department of Labor standards.  Once a rule is in the policy and procedure manual, it automatically turns into company law and employees can be penalized or even fired for not abiding by these laws.  A P&P will also protect you from legal liability in some circumstances.

For example, your P&P should have a policy on sexual and other harassment in the workplace.  In addition, your P&P should cover topics such as a code of ethics, hierarchy of management, dress and grooming standards, equal employment opportunities, fiduciary responsibility, employment at will, immigration law, conflicts of interest, nondisclosure and confidentiality, disability accommodations, attendance and punctuality, benefits, etc.

Having all of these policies predefined and accessible to all employees will save you a lot of grief in the long run and leave no room for interpretation.

Labor Unions

There’s very little more horrifying to a business owner than the possibility of a union organizing a company’s employees. Having a union is an added complication that very rarely makes life easier for management.  If you don’t know what it’s like, from a business owner’s perspective, being unionized is like someone going into your home and demanding where the furniture goes and how the house is decorated.  In the beginning, Labor Unions had a purpose which was to advocate for employees and negotiate better working conditions.  Unfortunately, through the years, many unions have become corrupt and do nothing but take dues from employees and cause problems between employees and employers.

If your company is already unionized, there’s probably not much you can do to get rid of them other than pointing out the deficits of their existence and hoping that your employees will push to decertify.  If a union is trying to get in, you have to be careful how you deal with it because there are laws against bullying employees not to unionize.  You may need to consider hiring an attorney who specializes in labor law. One way to avoid your employees from unionizing is to have an open door policy and allowing them to voice their objections.  Speak with your employees regularly and ask them ways in which they believe working at your company could be better.  Employees want to be heard and think unions can help them if they have lost hope in their interactions with management.

Expect the Unexpected

It’s not uncommon for a business owner who has just experienced some kind of disaster to think to him/herself, “I probably should have seen that coming.”  Be proactive, rather than reactive.  Consider all possibilities, no matter how farfetched they may seem.  Think about what can cause you problems in business.  Ask yourself, “What could put me out of business?” Think of all the possibilities and even make a list for yourself.   Go through the entire list and create a disaster plan for each item on that list or think of ways to prevent them from happening if possible.  For example, if the existence of your company is dependent upon a license, what if the licensing entity decides to revoke your license?  You may need to have an “in” at that licensing division who you can go to if someone is trying to sabotage your operation. 

Have you ever wondered what would happen if your lost your biggest client or if your biggest competitor opened up across the street from you?   These are things that have put companies out of business and it could happen to any of us.  If you intend on surviving this kind of a situation, you need to have a backup plan.  The key is to think ahead.  Have a plan before something like this happens.  That way it can be executed immediately if something threatens the stability of your company.  If you’re prepared, it could save your business.

Politics

If you hate politicians as much as I do, this one may be difficult to accept.  However, whether we like it or not, or whether we realize it or not, some industries are very political.  If you don’t have any political friends, you could leave yourself vulnerable.  It really depends on your business.  You may need to have a friend in the building department so plans get approved quickly, knowing your town’s Mayor could mean the difference between you opening a location in a particular area or not.  I’m not suggesting that you bribe anyone but contributing to an important person’s election campaign or contributing to a particular fundraiser could be helpful in strengthening your position in your community.  It might not even involve money.  Sometimes just scheduling an appointment with an important political figure to discuss your business plans could be helpful.  Get involved and get to know who is important and who could be important to you.

It's hard to predict all that can go wrong during the normal course of doing business and the topics I mention above are just a few things to keep in mind.  The main thing to take away from all of this is that you must stay vigilant at all times and try to anticipate the bad things before they happen.  Doing this will enable you to have a corrective action plan ready to execute or possibly have something in place before as a preventative measure.  No one has a crystal ball that could predict catastrophes before they actually happen but being unprepared for one can leave you exposed.