Why New Year’s resolutions fail. What’s the solution for a successful business – Article published online at startupcafe.ro

Every entrepreneur’s secret dream is to put their business on autopilot and enjoy more free time and higher earnings. Between that dream and the harsh reality lie the day-to-day operational problems, the delay in putting a coherent and documented strategy on paper, the worry about cash flow, and, for almost a year now, the worry about the impact of the pandemic on business continuity. The little certainty with which we were operating until 2020 has dissipated. But life goes on and new approaches are needed to succeed.

According to a recent survey (doingbusiness.co.uk), the most important challenges for companies at the beginning of 2021 are: business development (71%), cost growth (67%), cash flow (58%), increasing competition (46%) and new consumer behaviours (43%). On the other hand, entrepreneurs identify a number of opportunities, concerning: new products/services and focus on innovation (56%), digitisation, automation (43%), single market expansion (38%), government economic recovery measures (35%) and growing market (27%).

The methods most commonly used by entrepreneurs to guide business success vary:

New Year’s Resolutions

Taking advantage of the usually calmer end-of-year period, coupled with the availability of financial indicators, many business people take stock of the activity of the recently concluded year and propose a list of ambitious goals, like a New Year’s resolution. Everyone who has set such lists knows, at least approximately, what percentage of these goals are being achieved. By March, we estimate that around 80% of these resolutions (personal or business) are forgotten.

Why does it fail? Because those goals are actually desires and do not meet SMART criteria – specific, measurable, actionable, realistic, time-bound.

Digitization
The bane of our day, technology is vested with the ability to solve (almost) every problem entrepreneurs face. Considerable sums are invested in platforms, implementation, training and equipment, and after the months of euphoria typical of start-ups, the results don’t show.

Why does it fail? Because the IT solution is not supported by a well-organised, documented, monitored internal process system.

Calling on a external consultant/business coach. This idea offers the advantage of benefiting from the experience of people who are validated in their fields of activity, at much lower costs. The relevance of the consultant’s know-how to the client, the quality of the services, compatibility with the entrepreneur’s style and personality, the latter’s willingness to be consistent in implementing the proposed solutions, etc. are all important.

Why does it fail? In the fortunate cases where, with the help of a business coach or consultant, the business gets on a positive track, there remains the problem of independent flight – the continuation of favourable developments after the end of the collaboration with that consultant.

The fourth way, the hard one, starts from mission definition the company, how the organization responds to customer needs, setting product and service portfolio strategy, the creation of organisational culture, structuring internal processes and the management system, selecting relevant performance indicators, measuring, monitoring and acting on them, marketing – positioning and involving the target audience in the company’s social responsibility activity.

To navigate this path outlined above, a good starting point is to implement the ISO 9001 – quality management. And in order for this approach not to fail, are required two conditions: to choose a serious and competent certification body and de a acționa cu seriozitate și consecvență, to act seriously and consistently” (Michael E. Gerber).

About Systema

Systema SRL has been representing the United Registrar of Systems Ltd. group in Romania for 13 years, with headquarters in the UK and offices in over 40 countries, one of the largest certification bodies in the world. The main products and services are: ISO and TRUSTMARK certification, approved qualification courses, customer satisfaction monitoring systems.

Article published on startupcafe.ro.