Nevada County Picayune and Gurdon Times Newspaper Archive

Business Pitfalls Clearly Marked; To Be Avoided

by CHANDLER RUSS

"Pitfalls" do not sneak up on you like Murphy's Law. "Pitfalls" are problems and traps to watch for in day to day operations of a business.

By itself, a pitfall is harmless. Once identified, they become challenges, or opportunities, or just passing nuisances. Most pitfalls, (and there are many) are clearly marked. You just have to look for the signs.

Many would-be entrepreneurs become casualties during the first year of business leaving "no forwarding address." They self-destruct prematurely.

They fell into pitfall No. 1, "Giving up too soon." Signs for this pitfall are all related to your feelings and mental attitudes. Look for: anxiety, fatigue, frustration, impatience and fear bordering on panic. Sometimes its just a general feeling of not being happy with the way things are going. Listen to your feeling, admit there is a problem, see it for what it is and look for ways to solve it. Step around pitfall No. 1 and keep going.

Choosing "the wrong business" is another pitfall. This pitfall is probably the worst of all because escape is the most difficult.

Most problems can be solved and corrected while you stay in business and move forward. But discovering you are in the wrong business usually means going back to square one and starting over.

Signs for this pitfall are: you are not happy doing what you are doing. If you do not enjoy what you are doing at the start, chances are you never will. You are struggling to be proficient.

In other words, you feel like you are in over your head. You discover hidden problems and liabilities. You have been "taken." The world is full of swindlers, dishonest business persons, franchises and chains that hide the truth by painting a rosy picture to a trusting buyer.

Be careful to select a business you know something about. Beat the bushes and shake the trees, but do not be in a hurry to pick up the first deal that falls. Enlist the help of professionals before you go into or buy a business, or talk to successful entrepreneurs -- all can help avoid this major pitfall.

Do you recognize the next pitfall? "I'm always busy, but I can't seem to get anything done?"

If you do, you probably have fallen into the "activity trap." You are spending to much time doing busy work and not getting the essential work done.

The result can be lost business and lost profits.

If the important things do not seem to be getting done, if you find yourself drowning in a sea of paperwork, if you find yourself working long hours with not enough accomplished to show for it, list priorities and ask yourself: "Why am I doing this? Is it necessary? Is there a better way?"

Keep a diary of your time for a week or more, including both business and non-business time. Itemize anything that takes 15 minutes or more. You may be surprised to see how much time you spend on trivial matters and how little time is actually spent productively.

The next pitfall is "complacency."

Not all businesses that fail do so in the first few years. Some become casualties after 10, 20, 30 years of thriving success.

News of these business failures usually have people wondering, "How did it happen?"

Complacency is a fancy word for becoming smug about success and assuming it will continue automatically forever. Complacency is what the hare felt when it took a nap thinking it could still finish ahead of the tortoise. Sound familiar?

Your ability to continue your success will depend on your ability to plan for change, recognize it when it's happening and react to it in positive terms.

In other words, be proactive and not reactive.