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 the wrong decisions. In this article, we will look at some such beliefs that can let us down and show how they can be changed to a more constructive approach.

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

Think a luxury 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 their first few years are 36 per cent 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.

Many well-known companies started out by operating from their own home or garage, renting for business purposes, for example. virtual office in Poznań or Wrocław, which costs pennies, or an even cheaper mailing address Warsaw and other cities in our country are full of such services. Minimising fixed costs allows companies to focus on product development and customer acquisition, which ultimately gives them a better chance of rapid growth.

Business is not just about money

This is, in a sense, the reverse of the previous statement, but it is nevertheless a phrase you will hear from many entrepreneurs. Indeed, people set up businesses for various reasons - apart from money, we want to be independent, pursue our passions or simply have an impact on our surroundings.

But be warned: if you think 'business isn't about money', you may have a big problem. As the CB Insights study shows, 29% of new businesses fail 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 pub because they loved to cook, but forgot about the bills? Therefore, although noble causes are great, don't forget about finances!

I need to control every detail, i.e. micromanagement

Gallup research 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 not only knows 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 development, as obsessive control often:

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

Avoiding risk guarantees stability

Your company survived the first years. It hasn't been easy, but you've kept going, you could even say you're 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 story of CD Projekt - who would have thought that a world-renowned producer of bestsellers would emerge from a small games trading company? All because they were not afraid to take risks and bet on growth. So, do your 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 fable? 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 be stranded. Even if finance scares you, it's worth learning the basics, what is cashflow, fixed, non-recurring or variable costs, what is the difference between revenue and income, what is ROI, EBIDT, LTV and other ratios.

Take the example of Rafał Brzoska, who, although not 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 impact on business decisions can be crucial to an entrepreneur's success. It is therefore worth questioning them, being open to new perspectives and not being afraid to change your way of thinking when the situation demands it. Remember that flexibility of thinking and a willingness to learn are among the most valuable qualities of a successful businessman.

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