Business Mistakes

If you are doing or have done one of these actions, rethink:

• Hiring Relatives

  Consultants, reading this, grab for the Pepto. The idea that "family" won't steal from you has been disproven so often the obverse is true... Family Will Steal From You. Further, you won't lock up Family. Secondly, other employees are put on the backfoot. They could complain to the "boss" about the Office Manager playing dominoes all day, or being rude and unreasonable. But they can't complain to the Aunt of the offensive employee. This means employees will quit, will unwork, will harbor resentment, and the business will suffer. If you have to hire a family member, give them very narrow responsibility and prevent their need to interact with staff.

• Overruling a Manager

  Fire a manager if s/he isn't performing. Never leave a manager in place if a decision has been made which you disagree with. If a manager fires someone and you decide to reinstate that person, by undercutting the authority of the manager you have now given him or her an all expense paid vacation in your office. The manager will never attempt to interfere in the behaviour of the employees. S/he will hide in the office, the workers will do what they please. If the manager is not to manage, make sure this is built in the Terms of Reference. All hiring and firing is done by committee, or you, or a board, and the only authority the manager has is to "report" the employee. If a manager reports an employee and the decision is to keep that person, explain why to the manager. If not, you are in the position of overruling a manager, which means, there is no manager.

• Changing Systems That Work

  Before you change anything; from a schedule to equipment, examine efficiency. Just because what you are doing or using doesn't conform to whatever you are being sold, doesn't mean change is necessary. Nothing that is working is obsolete. Only where you are losing efficiency do you think of change. Many systems need so much tweaking to do what you want them to do that unless you can do the tweaking yourself, you've invested in inefficiency.

• Sacrifice Freedom for Security

  Many businesses become so worried that a customer might steal they enact systems which make customers cease their custom. Most people are not thieves and do not like to be treated as potential felons. Customers need to try on clothing, need to see the color in sunlight, or compare different garments. Many want to physically examine an item before purchase. If there is a problem with any of these activities; i.e. not allowing customers to try on clothing, preventing access to natural light or preventing a customer from examining a possible purchase, they will simply walk out without buying a thing. You can deal with the entrance and exit points while leaving the shopping area virtually free.

Sales clerks are not police officers, let them offer to help in a friendly manner, and if dismissed, do not stand on the shoulder of a shopper. Some women are very sensitive about their weight. They don't want you to see them take a size twenty two. Some may not want you to be watching the cup size. Teach your clerks to watch unobtrusively, and always be alert to assist. If you can avoid these four errors, you have laid the foundation for a successful business.