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Beliefs that can harm the development of your business

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Beliefs that can harm the development of your business

In the business world, success often depends not only on skill and hard work, but also on how we think about our business. Sometimes the beliefs we have deeply ingrained in our minds can get in our way and lead to wrong decisions. In this article, we'll take a look at some such beliefs that can let us down, and show you how to change them to a more constructive approach.

Costly status symbols are a measure of a company's success

Think a luxurious office and a fancy car is a sign of success? Better think again! A study in the Journal of Business Venturing shows that startups that keep costs in check in the first years of operation are 36 percent more likely to survive and succeed in the long term. You probably don't want to end up like those companies that quickly burn through cash on unnecessary goodies.

Wiele znanych firm zaczynało od prowadzenia działalności we własnym domu lub garażu, wynajmując na potrzeby biznesowe np. wirtualne biuro w Poznaniu lub Wrocławiu, które kosztuje grosze, albo jeszcze tańszy adres do korespondencji Warszawa i inne miasta w naszym kraju są pełne tego typu usług. Minimalizacja kosztów stałych pozwala firmom skupić się na rozwoju produktów i pozyskiwaniu klientów, co w efekcie daje im większe szanse na szybki wzrost.

Business is not just about money

In a sense, this is the inverse of the previous statement, nevertheless, you can hear such a phrase from the mouths of many entrepreneurs. For people start companies for various reasons - in addition to money, we want to be independent, pursue our passions or simply have an impact on the environment.

But beware: if you think "business isn't about money," you may have a big problem. According to a CB Insights study, 29% of new businesses fall precisely because of a lack of money. Look around among your friends or family. Surely you can find an example of someone who, for example, opened a diner because he loved to cook, but forgot about the bills? Therefore, although noble goals are great, don't forget about finances!

I have to control every detail, or micromanagement

A Gallup study shows that companies with engaged employees (i.e. those who are trusted and given responsibility) are 21% more profitable than companies with low levels of engagement. Take the example of Sebastian Kulczyk - a Polish entrepreneur and investor who knows not only how to build teams and delegate tasks, but by investing is also able to place trust in other entrepreneurs and their employees.

Do you really need to control every detail in your business? Micromanagement is the number one enemy of your company's growth, for obsessive control often:

If you don't want to go crazy and put the company down, learn to put trust in your employees, at least within the scope of their competence.

Risk avoidance guarantees stability

Your company survived the first years. It hasn't been easy, but you've kept operating, and it's fair to say that you're even earning better than full-time employees. You want to maintain this status quo, so you think that if you play it safe, your business will be stable and profitable for a long time? Unfortunately, not necessarily!

A McKinsey & Company study shows that companies that are not afraid of risk and invest in innovation grow faster, achieving an average of 2.4 percentage points higher revenue growth per year than their less innovative competitors.

Recall the history of CD Projekt - who would have thought that a world-renowned best-seller would emerge from a small game trading company? All because they were not afraid to take risks and bet on development. So, do your own thing, but don't be afraid to take risks sometimes!

I don't know anything about finance

Many people, including entrepreneurs, say that finance is not their fairy tale? If you run a business, you'd better change your attitude as soon as possible! A U.S. Bank study shows that as many as 82% small businesses fail because of cash problems.

Imagine running a business like a ship - you need to know how it's built, how to steer it, what drives it and where you're going, otherwise you'll crash or get stranded. Even if finance scares you, it's worth learning the basics, what is cashflow, fixed, one-time or variable costs, what is the difference between revenue and income, what is ROI, EBIDT, LTV and other ratios.

Take the example of Rafal Brzoska, who, despite not being a financier by training, knows how money flows in and out of his company and what to do to make more and more of it. Among other things, this is why his parcel machines have been a huge success in Poland and have also been conquering demanding international markets for years.

Summary

Awareness of one's own beliefs and their influence on business decisions can be crucial to an entrepreneur's success. Therefore, it is worth questioning them, being open to new perspectives and not being afraid to change your way of thinking when the situation calls for it. Remember that flexibility of thinking and readiness to learn are among the most valuable qualities of a successful businessman.

How to identify and attempt to change beliefs if they turn out to be wrong?

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