In my work as a business coach, I consistently meet with business owners grappling with obstacles impacting their time, team and money.

In this weeks post, I've summarised six of the most common challenges hindering personal and business success.

This overview provides a glimpse into potential remedies. At Butler & Co, our tailored business coaching services offer an objective perspective to identify your blind spots and craft customised solutions - meeting weekly and holding your hand throughout the entire journey.

Obstacle 1: Lack of Clear Goals and an Inspiring Purpose

As Yogi Berra wisely stated:

"If you don't know where you are going, you might wind up someplace else."

When it comes to both personal and business growth, this quote rings particularly true. Crafting a well-defined vision is not merely a formality but a strategic imperative. Picture this as your compass, guiding every decision in harmony with your desired destination.

From there, establish a 5 to 15 year big, hairy, achievable goal – a quantifiable target with at least a 50% probability of success - even today. Think audaciously, but remain tethered to reality.

Thereafter, outline a 3-year vision that sets the organisational landscape for reaching that grand goal. Envision what your company needs to become to stay on the trajectory of achieving the big, audacious dream.

Moreover, delve into the nitty-gritty of your aspirations. Identify the next 12 months' top 5 goals, not just from a business perspective, but also from a personal one.

Obstacle 2: People-Dependent vs. System/Rules-Dependent Business

Here at Butler & Co, we champion a fundamental belief:

"Systems run the business, people operate the systems, and leaders lead the people."

It's a paradigm that defines the core of successful businesses across a diverse range of services and industries. Yet, too often, small businesses find themselves inadvertently reversing this equation, building a reliance on individuals rather than robust systems and rules.

Take a moment to reflect on your current challenges. Identify your most pressing problem and ask a pivotal question: How could a new system or rule solve this particular issue? This shift in perspective often unveils opportunities for efficiency, consistency, and scalability.

One prevalent concern among business owners is the fear of losing key personnel and the subsequent ripple effects on the entire organisation. This apprehension often leads to retaining individuals who may not be the right fit or in the optimal role. To counter this, consider enhancing your recruitment and hiring processes.

Having a proven process for attracting an abundance of qualified candidates, filtering, interviewing and onboarding top-performing team members not only mitigates the risk of overdependence on existing staff but also propels your business forward with a dynamic and capable workforce.

Obstacle 3: Offering Too Many Products/Services

Diversification is often seen as a hallmark of business strategy written in the text books, but it's crucial that small to medium sized businesses tread very carefully here. Offering a myriad of services or products may seem like an avenue for growth and happy clients, but it brings its own set of challenges.

Firstly, consider the complexity it introduces into your operations. Each new offering comes with unique requirements, production processes, and delivery mechanisms. Navigating this complexity can strain resources, including your time, thereby impeding scalability.

Moreover, a broad offering can dilute your focus and expertise. Focus and differentiation are key.

Scaling demands a clear value proposition, and spreading resources thin compromises the depth and quality of each offering.

Increased marketing and education costs also accompany a diverse range of products or services. Creating awareness and building trust for a varied array requires additional effort and resources.

Consistency is the cornerstone of customer experience. Offering diverse products or services may lead to an inconsistent customer journey, impacting satisfaction and loyalty. This inconsistency can result in negative reviews and erode the trust necessary for successful scaling.

At Butler & Co, our experience in working with over 50+ Australian small to medium sized businesses underscores a common theme:

Those businesses that grow effectively with minimal friction (and have happy owners who sleep well) have done so by effectively selling one solution, to one specific problem, experienced by one specific client type.

Consider this: How many of your problems would disappear if you became exceptionally great at selling just one solution, to one specific problem, experienced by one specific client type?

Obstacle 4: Diminished Enthusiasm from the Business Owner(s)

Let's delve into a fundamental aspect that often gets overshadowed: the enthusiasm and drive of the business owner. Ask yourself, are you steadily progressing towards your pre-determined goals, or have the 'fires of the day' taken precedence, consuming your time and energy?

Earl Nightingale's wisdom echoes loudly here:

"Happiness is the progressive realization of a worthy ideal, or goal."

Your business journey is your own personal pursuit of that ideal. Yet, it's easy to get entangled in the 'problems of the day,' a pitfall that drains the energy of even the most determined entrepreneurs (and their teams) if left unresolved for too long.

Consider this crucial question: What activities, commitments, or distractions should you start saying "no" to, in order to say "yes" to the activities needed to achieve the new goal?

Obstacle 5: Lack of Three Critical Plans

As the insightful Steven Covey pointed out, our journey towards creating involves three essential steps: imagination, representation, and manifestation.

Sadly, many business owners inadvertently skip the crucial second step – creating a representation or plan.

Think of it this way: You wouldn't start building a house without architectural plans to guide you. Similarly, in business, skipping the planning phase is akin to laying bricks without a blueprint. Before embarking on execution, we must create three indispensable plans:

Revenue, Profit, and Cash Flow Forecast:

Estimate your business's monthly revenue, profitability, and cash position for at least the next 12 months. This forecast serves as a strategic tool, allowing you to test decisions and anticipate their ripple effects on profit and your bank account before blindly executing them.

Organisational Plan:

Visualize the organisational structure your business needs. Define the roles (seats) required, outlining primary responsibilities for each. Equally crucial is identifying the individuals who will fill these seats, ensuring a cohesive and functional team.

Which seats does it make sense for you to stop sitting? Consulting your revenue, profit and cash flow forecast (see above), by when does it make sense for you to exit the seat?

Tactical Marketing Plan:

Outline the 1 to 10 specific marketing tactics that will propel you towards your revenue and profitability goals for the year. Estimate the number of leads each marketing tactic is going to generate. This tactical plan serves as a roadmap, guiding your marketing efforts with precision. Are you doing enough marketing activity in order to generate the required number of leads necessary in order to achieve your revenue and profit goals?

These plans are not mere formalities; they're practical tools and are essential in order to make good decisions and see success before it happens.

Obstacle 6: Lack of (or Rushed) Business Succession Plan

Succession planning is a critical aspect that often falls prey to neglect or haste. Two primary approaches exist: placing the business 'under management' while retaining ownership, or preparing for a complete transfer of ownership and leadership via a 'sale'.

Regardless of your chosen path, certain common pitfalls demand careful consideration.

Lack of Planning

One of the most significant traps is the failure to plan early. Postponing succession planning until retirement or near retirement may lead to a rushed and less successful transition. Early planning allows for the development and/or recruitment of potential successor(s), increasing the probability of a smooth handover.

Not Considering All Options

Succession planning involves exploring various possibilities, from transferring to family members to selling to external parties or employees, to retaining ownership and learning how to effectively 'manage the manager'. Each option carries its unique advantages and challenges. Limiting your options may hinder informed decision-making, making a thorough evaluation crucial.

Ignoring Cultural Fit

Assessing cultural alignment between the successor and the business is paramount. Shared values, vision, and passion are vital for a seamless transition that preserves the company's culture and identity.

Lack of Financial Planning

Neglecting the financial aspects can lead to complications. Determine the fair value of the business, explore financing options for the successor, and consider tax implications.

In the event the business is put under management, consider the implications of adding additional staff / overheads and whether or not the remaining cashflow is sufficient or meet your personal goals.

How are you performing in each of these six aspects?

Which of these priorities does it make sense to tackle first?

While undeniably crucial, solving these obstacles often lack immediate urgency making them easy to continue to defer.

If you're genuinely committed to implementing these changes, considering external assistance to hold you accountable and provide you with a proven approach is an intelligent move. Otherwise, there's a risk of finding yourself in a familiar spot next year, and the year after —staring at the same list and wishing you had taken action sooner.

For personalised assistance in implementing these changes, feel welcome to schedule a no-obligation 15-minute slot on my calendar here: https://www.butleradvisory.com.au/time-with-trent