16-06-2025
Blowing The Lid Off Small-Business Success
Lance Reid is CEO of Telcion Communications Group, a provider of IT solutions and managed services for the healthcare industry.
As a small-business owner, I've learned to always look several steps ahead. While focusing on the challenge or opportunity right in front of you is important, you cannot focus on that to the detriment of the other challenges and opportunities also on your plate. Call it multitasking with a purpose.
Citing data from the U.S. Bureau of Labor Statistics, the Commerce Institute said that one-fifth of small businesses overall fail in their first year. That percentage rises to nearly 50% by year five and more than 65% by year 10.
The category my company most closely aligns with—professional, scientific and technical services—fares slightly worse than average, with a 10-year survival rate of about 31%. So, I consider myself lucky that the IT services firm I co-founded in 2002 is still thriving and growing its market share.
According to Investopedia, the four top reasons small businesses fail include inadequate capital and marketing missteps. But I want to focus on the other two: ineffective business planning and inadequate management skills.
Ineffective business planning occurs when an owner concentrates on the task at hand with no larger thoughts about the business. As the owner, you should know the answers to the following: Who are your competitors? What are your advantages against them? How are they better than you? What micro and macro trends are likely to affect your business in the months and years to come? Who are the other leaders in your company whom you can rely on? By readily knowing the answers to these questions and understanding the unique business proposition your company brings, you can plan more effectively.
Of course, sometimes the task at hand truly is the most important thing, such as a critical deadline for your best customer or preparing for a pitch meeting that could mean significant growth for your company in the next year. But you can never lose sight of the bigger picture: the ongoing future success of your business.
The main strategy that I've used over the years to help with this is to set a specific time on my calendar for strategic planning. The best results come when I get away from the office and turn off all notifications so I can have some uninterrupted thinking time. I've also found it very useful to set aside two to four hours with my team to brainstorm and talk about long-term strategic direction. This forces me to get my thoughts together and be prepared for a discussion. There are always fires to be put out, clients to call and urgent tasks that come up day to day, but if I don't make time for it, I'll never get it done.
Inadequate management may be even tougher to deal with because, in small businesses, the owner is often the only manager. Without a network of peer owners or business advisors to rely on, owners can lose sight of the business in the day-to-day rush to serve customers, drum up business and manage staff.
I recommend constantly growing your own skills so you can be a better manager, a better mentor and a better worker within your business. Listening to podcasts and reading books on management is a simple step to start with. If you find resources that are really good, go through them with your team so they can learn with you.
I'm constantly looking for good books to read on leadership. For example, one of the most influential books I've read is John C. Maxwell's The 21 Irrefutable Laws of Leadership. My biggest takeaway from the book is that you do not want to be the lid for your organization. A business can't grow beyond the competence—the lid—of its leader, which means you'll need to learn new things you might not otherwise want to. For example, I love the technical aspects of my business, but at one point, I had to put other people in charge of the technical side because my time and attention as a leader were better spent elsewhere.
Likewise, managers and other executives aren't likely to be attracted to companies where the CEO or president doesn't offer an opportunity for that manager to grow in responsibility. I might not be the smartest person in the room, but I must bring a holistic perspective to the business that other leaders, managers and employees don't have.
To help foster this holistic perspective and foster further growth as a leader, mentorship can also be worthwhile. Early in my career, I hired an executive coach to hold me accountable. Later, I joined a CEO group with a local chapter, where I could talk with other CEOs and be held accountable by the group chair and my peers.
It's a constant challenge to keep raising the 'lid' and learning new things, but it's critical to the success of your company. Personally, if I ever get to a place where I'm not willing to challenge myself in this way, then it's time for me to step aside and let someone else lead the company. I never want to be the lid for my organization.
Forbes Business Council is the foremost growth and networking organization for business owners and leaders. Do I qualify?
