A lot has to come together for a business to work, but at the end of the day, it is usually one person’s decision that impacts the output. And in most cases, that person is the boss. The case is same for both small businesses and large corporations, where there are usually many bosses due to the existence of a hierarchy.
So what are some of the mistakes made by bosses that may prevent businesses from achieving their goals? Let’s find out:
1. Not Hiring Enough People
Believe it or not, there are many businesses that do not have the number of people that they actually need to function properly. There are many reasons why one may shy away from hiring more people, including a lack of physical space, fear of handling more people and an attempt to save money. However, one must realize that not having the number of employees that you need is a business suicide.
Not having enough employees means you will either have to let go of some opportunities or cause unnecessary delays. Plus, it also results in more pressure on your current employees causing demotivation and also high turnover.
2. Hiring Too Many People
We’re not trying to contradict the first point, but it’s important to realize that having more employees (than you need) is as harmful as having little employees, if not more. If you need fifty employees, then the 51st employee that you hire would be causing you a loss, which you can save by doing away with him or her.
You must know exactly how many employees you need so that you do not end up spending extra money. At times when you feel like there is a burden of work or you start winning new business, you can consider engaging a freelancer until you are sure you can afford a full-time staff.
Not just this, businesses should curb all other kinds of ‘extra expenses’ to improve the bottom line.
3. Delegating Every Job
Bosses love to delegate their work, as it takes the burden off their shoulder, but they often tend to neglect the side effects of doing so. Firstly, if you delegate your own tasks to others, you may begin to lose authority as others would look at you as someone who does not believe in working. Plus, they may not be able to do the job as well as you could, resulting in a poor outcome.
It is important to lead by example. Do your job the best you can so that others look up to you.
4. Delegating Nothing
Not delegating anything is a mistake that can cause you financial and mental problems. If you’re bombarded with a lot of work, it is important that you delegate. However, this is a decision that must be taken with utmost care.
Always assign duties to someone who is capable of doing the job. Also, guide them so that there is no miscommunication and the outcome is perfect.
Delegating work has other benefits as well. Firstly, your employees would feel appreciated if you assign them ‘rewarding’ tasks. They would feel a part of the business. This can help create a strong work environment and increase loyalty.
5. Neglecting Paperwork
We all hate paperwork, but it is very important to note everything in the business world. Paperwork starts from the day you get your company registered. From this day you must make sure to record everything, including transactions, contracts and conversations.
A lack of record can cause serious issues. Plus, businesses need written records of all their activities for legal purposes as well. Avoiding paperwork is a mistake that can cause you millions.
By paperwork, we mean all the numbers. Your balance sheets, P&L statements, and all expenses should be properly maintained. Additionally, you should keep an eye on returns so that you can measure the ROI and take decisions in the light of facts.
6. Preventing Creativity
Many bosses like to dictate their employees. While they usually do so to get the job done in an efficient manner, they often fail to realize that dictating too much may curb creativity and prevent employees from performing at their best.
You should listen to your employees and their ideas as well, and give their suggestions a thought. The ‘boss is always right’ is a theory that isn’t acceptable anymore. Your employee may have a better solution to a problem, and listening to them may save you from a loss. Make it a point to speak to them about every project and provide feedback where necessary.
These simple-on-paper mistakes can prevent businesses from meeting their goals. It is important to identify and rectify them as soon as possible if you want your business to flourish.