Avoiding the fatal flaws that haunt management

Given that most people here are trying to make a buck, I'm not sure a management perspective will help.

But here's something that everyone needs to watch:

Cash flow.

Don't spend money on a whim or because it sounds like a good idea. Be very practical and clear about how this is going to make you more money in a predictable amount of time--or don't do it.

And if it's your last hundred bucks, DO NOT go for the Hail Mary throw. You will fail. Work with what you've got.

I've spoken about the dangers of quickly increasing cash flow before but here it is again:

Just because you've earned more money than you normally do doesn't mean you go blow it on some magic beans.

I've made this mistake and it cost me thousands.

Fortunately not in the past two years. But an increasing cash flow can cover up a number of serious mistakes...you take on more recurring expenses because you feel you can...you buy big ticket items because you can afford them now...and when the cash suddenly dries up, you're stuck with 'em.

And now you have a problem. Large companies make this mistake all the time: buying expensive and fancy advertising that doesn't work and isn't trackable. They're throwing money out the window. But since the cash flow temporarily covers the mistake up, they brag about it instead. Until the hammer falls. And now they may be in a commitment they can't easily get out of.

I know most people are concerned with making a dollar. But making many dollars quickly can screw you up, too.

#16 ) Listening to bad advice is a business killer

When your in over your head on a subject ...

Everyone starts looking for advice, the deeper you are the
more susceptible you are to listen to BAD advice ...

I have witnessed that kill more business then any other mistake.

Finding the right information, the proper advice, the proper direction
is not easy to do ... and more times then not, the best action for the
moment is completely counter intuitive.

#1. Refusing to accept personal responsibility or accountability.

I see this all the time in the insurance agency world. Some superstar agent starts to build an agency and when he finds out the vast majority of people are not sales superstars he can't get past it. They think if every agent were just like them then everything would be great........ and it is the "bum" agents who "suck" who are the problem.

No the problem is the agency owner. Anyone could make a fabulous living if they had superstar agents but being a successful agency is not about lucking into a bunch of diamonds in the rough.

Failure to document and build process and this leads to disaster when a "key" person leaves/retires. Everyone should be replaceable,maybe not as good at first but the whole house of cards should not fall down. I used to think this was much more of an issue in smaller companies but if you define large by their income I have seen 10 million+ yearly revenue companies cave in or go through serious issues because of the loss of 1 person.