You’ve heard of the seven deadly sins – sloth, greed, wrath, lust, envy, gluttony, and pride – but did you know that if you’re an entrepreneur or a small business owner, these very same vices can hinder you when it comes to growing your businesses?
Tshego Bokaba, who oversees Consumer Financial Education at the Momentum Group, says: “When you decide to become an entrepreneur or to start a business, you will frequently face challenges and obstacles that need to be overcome.
“Occasionally, one of the obstacles will be you.
“Avoid the seven cardinal small medium enterprises (SME) sins, and you will be in a better position to realise your dreams of owning a successful and sustainable business,” she says.
Sloth – Don’t be lazy about drawing up a clear business plan
There’s no getting away from it: if you want to start a business, secure investment or grow your existing business – you need a plan. It doesn’t need to be complicated or lengthy, but it should provide an overview of your business, a financial plan with targets, your marketing plan, and a synopsis of the landscape in which your business operates. There are several free tools and templates available online to help you create this.
“A business plan is like a map for business owners, helping you identify where you want to go and how to get there,” says Bokaba.
Greed – Don’t grow too fast
We get it: you want to grow your business, and you want to do it quickly, but the reality is that the most sustainable business growth is pegged at around 10% – 25% annually, according to Havard Business Review.
Growing too fast has many risks attached, such as burnout and a decrease in the quality of your product or service. Many investors see overly fast growth as a red flag, as they know from experience that all too often it results in a crash landing.
“See your business growth as a marathon, not a sprint, and ensure it is paced correctly. The aim is to grow gradually and sustainably,” says Bokaba.
Wrath – Pause before you get angry
It’s frustrating when suppliers deliver late, or a customer leaves a bad review. You pour your heart and soul into your business, and it is hard not to take it personally when things go wrong. But whatever you do, don’t get angry and turn to social media to vent your frustration or badmouth the customer or company in question to others, as this often has far-reaching consequences that will negatively impact you.
“Before reacting, ask yourself if your response will help or hinder the outcome you want for your business. Often, this brief pause will provide a new perspective on a situation.
“Remember, we cannot always control what happens, but we can control our response. Don’t burn a bridge that you may need to cross again at some point in the future.”
Lust – Understand the difference between ‘desire’ and ‘need’
That new Stanley Quencher would look sooo good on your desk – and it’s a business expense after all, right? “Stop before you splurge on things for your business, which you don’t need, says Bokaba.
“When running a business, it’s important to maintain a steady cashflow, with some money set aside as a buffer for those months where things get a bit tight. Learn how to differentiate between what you want and what your business needs – as in, what will help generate income, save costs, or streamline operations, ultimately saving you time.” Spoiler alert: That’s probably not going to be a tumbler.
Envy – Don’t compare yourself with other entrepreneurs
I heard Farahnaaz has hired five new people to join her digital agency. Sibu’s new eatery is killing it. I saw on Insta that Andre bought a Porsche – his company must have landed that tender he was talking about!
It is hard not to compare yourself with other entrepreneurs, says Bokaba, but you need to stay focused on your own business goals. “Every company’s growth trajectory will look different, and instead of trying to compete with your peers, focus on your own entrepreneurial journey, business milestones, and successes.”
Gluttony – Don’t hog every task to yourself
Too many business owners try to do it all and get bogged down on things they’re not good at or don’t enjoy, says Bokaba. “Once your business is in the financial position to do so, delegate and outsource the tasks you’re not good at or that your time is not best spent on, and free yourself up to focus on what is important: growing your business.”
Pride – Ask for help when you need it
It is okay to admit that you do not know it all or to question yourself; in fact, these are the hallmarks of successful entrepreneurs. “Ask for help and lean on your network when you need it. Find a business mentor or a professional, such as a financial adviser, who can guide you when you get stuck, helping you make better, more informed decisions,” says Bokaba.
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