Are you infected? There is an infectious business disease out there that is impacting businesses of all types and sizes. It is causing lost business, business interruptions, and, in the very worst cases, business failures.
No vaccine prevents this infection, but there are steps you can take to diagnose it and corrective action you can take to minimize its impact on your business now and in the future.
The infection is COMPLACENCY. One definition of this business disease is, “a feeling of quiet pleasure or security, often while unaware of some potential danger, defect, or the like; self-satisfaction or smug satisfaction with an existing situation, condition, etc.” It can occur during good times as well as bad but most often begins when business is doing well, and business owners are caught up in the expanding and increasing sales or other projects that come with a growing business environment.
It is always easy to contemplate dealing with an underperforming employee or supplier when things slow down. This is the beginning of the infection, and it can grow from here, infecting other employees or parts of your business you didn’t anticipate.
But, it can also occur in slow or rough times when owners continue to do the same things and expect different results.
What steps can you take to ward off this business killer? One of the best inoculations is constantly reviewing operations, staff, vendors, and suppliers to ensure they are all performing in a manner that benefits the business. It is always easy to contemplate dealing with an underperforming employee or supplier when things slow down. This is the beginning of the infection, and it can grow from here, infecting other employees or parts of your business you didn’t anticipate. In his recent article for Inc.TM magazine, Matthew Swyers of The Trademark Company, outlined four key steps to assist in avoiding complacency:
1. PRACTICE REASONABLE PARANOIA
Someone is always coming for you. Your competition is always figuring out a better way to do what you do. So, practice reasonable paranoia. Don’t be blind to the fact that your competition will target you once established and try to take your customers. Practicing reasonable paranoia will keep your business fresh and in front of the competition.
2. LOOK IN THE REARVIEW MIRROR
When you are in the lead, it is often difficult to see who is behind you. So what? Look anyways. Who is your closest competitor… your closest five competitors… your closest 10? What are they doing now, and what are they planning? What do they do better than you?
3. YOU CAN ALWAYS DO BETTER
A product, a service, a policy, or a procedure can always be improved. No one is perfect, and when or if you get to the point where you feel things are 100% perfect, then you are not looking hard enough. Staying out in front is challenging yourself and your business and not reacting only to competition.
4. LISTEN FOR FRESH IDEAS
If you think you know it all, you will fall victim to the complacency infection. Always be looking for new ideas from competitors, employees, your North American Equipment Dealers Association, and fellow business owners in the same and other industries. You never know where or when the next great idea will come. Take advantage of opportunities at supplier meetings or Association meetings to ask questions and discuss problems and issues with other business owners. Surround yourself with good people and associates, and always be looking down the road to keep the pipeline filled with new and fresh people to add to your business. New ideas and opportunities are always there… just listen.
One of the best inoculations is constantly reviewing operations, staff, vendors, and suppliers to ensure they are all performing in a manner that benefits the business. — Kim Rominger | CEO, NAEDA
Find new resources
NAEDA has assistance in many areas of your business. You can find information on manufacturer contracts, state and provincial dealer statutes, merger/acquisition information and assistance, legal advice, legislative information and assistance, business valuations, certified audits, 401(k) audits, dealer/employee training, and many business programs and products you use daily in your dealership. There is so much available from NAEDA that will assist you in your dealership.
As I mentioned earlier, this complacency infection is a business killer. Don’t find yourself a victim, and always remember to THINK NAEDA FIRST!
Kim Rominger is CEO of the North American Equipment Dealer Association (NAEDA).
