As an accountant running my own practice, I often advise business owners on how to run better businesses and become better business owners. This advice is not limited to financial matters; it also encompasses cultivating positive habits, and avoiding negative ones, that can significantly impact the success and sustainability of their businesses.
Habits are ingrained, automatic patterns of behaviour that we repeatedly engage in without conscious thought. They are formed through repetition and reinforcement. Habits can encompass a wide range of actions, from daily routines like brushing teeth to more complex behaviours such as exercising regularly or procrastinating.
These habits can have a significant impact on our lives, influencing our productivity, health, and overall well-being. While some habits are positive and contribute to personal growth, others may be negative and hinder our progress. Understanding the power of habits and how they are formed is essential for individuals seeking to make positive changes in their lives.
Putting this into a business context we can identify positive and negative habits that business owners may exercise and how these impact the business:
Examples of Positive Habits and why they are important.
- Financial Discipline: Maintaining a keen eye on financial records, budgeting, and regularly reviewing financial statements to make informed decisions. Proper financial management is vital for profitability, growth and staying out of trouble.
- Goal Setting: Establishing clear and achievable business goals, both short-term and long-term, provides direction and motivation for the team and paves the way for sustainable growth and long-term success.
- Continuous Learning: Staying up to date with industry trends, regulations, and innovations, enabling the business to adapt and grow in a competitive market.
- Effective Delegation: Delegating tasks to skilled employees and trusting their abilities, can enhance productivity and allows the business owner to focusing on strategic aspects of the business.
- Customer-Centric Approach: Prioritising customer satisfaction, listening to feedback, and building lasting relationships through effective communication, helps foster trust and loyalty and encourages repeat business and referrals.
- Adaptability: Being open to change, embracing new technologies, and adjusting strategies based on market shifts keeps the business competitive and relevant in evolving markets.
- Networking: Actively participating in industry events, building a strong professional network, and seeking partnerships and collaborations.
- Work-Life Balance: Recognising the importance of personal well-being and maintaining a healthy balance between work and personal life.
Unfortunately, many business owners fall into negative business habits, which can reduce their ability to achieve desired outcomes and may even lead to business failure.
Here are some examples of negative habits and their impact:
- Procrastination: Delaying important tasks and decisions, which can lead to missed opportunities and increased stress.
- Ignoring Financial Management: Neglecting proper financial planning and record-keeping, leading to cash flow problems and potential legal issues.
- Micromanagement: Hovering over employees, stifling creativity, and inhibiting the growth of the team.
- Resistance to Change: Stubbornly sticking to outdated processes or technologies, hindering business innovation and competitiveness.
- Lack of Customer Focus: Failing to understand or address customer needs and concerns, resulting in customer churn and a tarnished reputation.
- Neglecting Employee Development: Not investing in employee training and growth, which can lead to high turnover and a less-skilled workforce.
- Overextending: Taking on too many responsibilities or expanding too rapidly without proper planning, risking financial strain and burnout.
- Ineffective Communication: Poor communication with employees, customers, or partners can lead to misunderstandings and conflicts.
We are only human.
Of course, no-one is perfect and the habits we follow will change with the seasons and all we can do is try and move away from the negative toward the positive but it’s not easy.
To give up negative habits and transition towards positive ones, individuals must embark on a deliberate, and often challenging, journey of personal change. Recognising and addressing these negative habits while actively cultivating positive ones is essential for business owners who aim to build successful businesses.
Consistent practice and repetition are key to ingraining new behaviours into daily routines. Set clear, achievable goals to provide direction and motivation and seek support from friends, family, or professionals for accountability and encouragement.
Embracing patience and resilience is crucial because setbacks are a natural part of the process. Ultimately, the commitment to self-improvement and the recognition that change is possible empowers individuals to leave behind negative habits and cultivate positive ones, leading to personal growth, a better quality of life and a business that is sustainable and successful in the long term.
