I recently asked one of my clients, "If you had the opportunity to hire you, would you?" His answer startled both of us: "No, probably not!" In his case, he had invested $120,000, quit a high paying job and had worked eight months on developing the new business. Now he finds himself facing possible business failure unless he can turn it around quickly.

Unfortunately, I have seen this phenomenon often in start-ups.

How is it that a reliable, hard-working and experienced employee can, as an owner, become your company's greatest liability?

There are a number of contributing factors. Here is a list of eight contributing factors I have observed in working with entrepreneurs for the last 20 years:

• Failure To Follow A Plan:going to the trouble and expense of creating a formal business plan and then not following it. Bouncing around from one task to another, it is easy to feel like you are busy and doing lots of work. However, if those tasks do not create a tangible and measurable result for the company, you have probably been wasting your time.
• Lack Of Systems: the purpose of a system is to both control business processes and measure performance. If you are not taking the time to put adequate controls and systems in place, how can you ever expect to improve? Every business has specific processes for the delivery of its products and services. In the small businesses I have seen, the area of business that is most lacking systems is sales and marketing. What does it take to manufacture a customer? A well designed marketing and sales system will allow you to manufacture customers in an efficient and methodical process. Without proven and effective systems for manufacturing a customer, no business will prosper.
• Lack Of Committment To Clearly Stated Goals: there is not one business owner I can think of who did not have a high level of commitment to the success of their business. However, I have noticed many business owners fail to create specific goals. I am not talking about a bunch of items on a "to do" list. In business, it is results that count. Getting clear about the results you want to create is the most important and yet, most ignored aspect of goal setting. Depending on the type of result you want to create, you will need to create a different subset of specific goals. That, when completed, achieve the desired result.
• No Plan: this is the one I see most often. This is closely linked to not having a clear set of goals, objectives and systems to keep you focused and accountable. Having a goal of - I want to do as much business as possible," is not a goal. I have had people state to me, "Why would I want to limit myself with a specific goal? Why not try to do as much as possible?" Getting clear about your results, goals and objectives will create clarity and focused activity. Most importantly, it will allow you to measure effectiveness, take corrective action and increase your odds of success.
• Poor Work Habits: if you had an employee that was bouncing around from task to task and not able to complete important milestones, what would you do? You would probably fire them, right? You must hold yourself to the same standards and expectations?
• Trying To Do Too Much: attempting to be everything to everybody is a sure-fire formula for failure. No one can do everything and do everything well all the time. Make sure you are not just winning the battles but losing the war. Have a job description for yourself? If not, create one. It will keep you focused and on track.
• Confusion: this is an insidious and costly symptom. After trying for months to do everything, confusion sets in. I suggest, you take time at the end of each day to evaluate how the day went and review your "to do" list. Mark off the completed items and reprioritize your "to do" list. This will allow you to feel ready for the next day and go home feeling organized and focused. If you do this everyday, you will likely not feel confused again for a long time.
• Make Sure You Have Adequate Working Capital: the same client I mentioned early in this article chose to ignore advice on the amount of funding they would need to raise. They made a decision to only raise 50% of the amount they actually needed. Turns out they now need more captital (surprise!) and are having difficulty raising the money they were told they would need in the first place!

Bottom Line: if you can identify with these seven points, you need to get back on track by applying an accountability standard and examining your work habits. If that does not work, you may be in the wrong business.

I have a coaching process called the Performance Bridge - that will help you identify your skill-kit, values and desires. It also creates a 12-month action plan. Contact Greg at 1-866-281-8281 or email for more information.