Sometimes we get so overworked that we just can't see through the fog. We have multiple stimuli which continually push and draw our attention to different places. Sometimes in the midst of all the confusion, pitfalls or setbacks can occur. This is a common problem amongst business owners and it should not be treated lightly.
Preparing ourselves for overcoming obstacles is an integral part of learning how to manage a successful enterprise or operation. Not long ago, I found myself in a dilemma that involved certain expenses within our organization going unpaid. Once I was made aware of the problem I realized it stemmed from a lack of available funding in accounts payable. Now at first glance this seems like a headache waiting to happen in dealing with the resolution of this problem, but our executive board was well prepared and ready to execute a solution. We contacted all of our accounts that were slightly delinquent and we notified them of our error, we then immediately transferred money from our cash savings account into accounts payable. After this was completed we contacted our delinquent accounts and we made them an offer to settle any outstanding late payments, in addition we offered to pay 50% of next months payment now to keep good relations.
While our accounts payable department had come across a large setback and obstacle in their daily operation, the executive team was prepared for an issue of this nature to occur, and they reacted accordingly. When you are running a small business or new organization, it is incredibly important to review your internal disaster controls. That is, what measures have you developed or do you need to develop that will assure safety in times of business distress? Sometimes financial problems call for establishing an emergency line of short term credit with your local lending institution, or simply keeping extra cash reserves as shown in the example above. Other times you may run into human resource issues that are causing your production to slow down and you must address the problem. This is another good example of how you should prepare yourself for the unexpected. Implementing a human resource crisis management plan will give you the internal organizational mechanisms to confront problems head on before they get out of control.
There are numerous situations that can arise in running your business; Sales deliveries can arrive late, customers can cancel orders, employees can have accidents, and much more. Pitfalls, setbacks and obstacles are likely to present themselves numerous times throughout the life of your business, as well as in your personal life. The key to overcoming these setbacks is to be prepared for any obstacle that may occur by implementing internal controls to help manage the impact of the situation. This is how a successful business continues to thrive.
© Copyright 2004-2005 www.motivatedentrepreneur.com
About the author: This article was written by Ryan M. Hoback. Mr. Hoback is founder of the Motivated Entrepreneur, a business incubation firm and consulting business.