{"id":100211,"date":"2023-04-16T16:05:00","date_gmt":"2023-04-16T20:05:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=100211"},"modified":"2023-04-24T12:56:52","modified_gmt":"2023-04-24T16:56:52","slug":"common-business-problems","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/common-business-problems\/","title":{"rendered":"3 Common Business Problems & How to Navigate Them Wisely"},"content":{"rendered":"\n

How long does it take to find the right investors? How do you maintain personal well-being when leading a business? Why should you memorialize business catastrophes?<\/p>\n\n\n\n

No matter how well your launches go, you\u2019ll likely face challenges in your business. Serial entrepreneur Tony Fadell recommends strategies for three common business problems: a lack of funds, a lack of work-life balance<\/a>, and catastrophes.<\/p>\n\n\n\n

Continue reading to learn how to navigate these challenges and come through as a stronger leader with a stronger business.<\/p>\n\n\n\n\n\n\n\n

Problem #1: Lack of Funds<\/h2>\n\n\n\n

If you lack funds for your business, you\u2019ll need to find investors. To do so, Fadell first recommends that you have a clear plan regarding how much money you desire and what specifically you\u2019ll use it for. However, you should have enough money to last for a few months since that\u2019s how long finding the right investors will take. Second, Fadell suggests that you vet your investors carefully<\/strong> since you can\u2019t fire an investor even if they\u2019re bad. Pay attention to how well they treat you when you\u2019re pitching them. If they\u2019re disrespectful, want too much (more than 22%), or have a poor reputation among other startups, look for someone else.  <\/p>\n\n\n\n

(Shortform note: The authors of Blitzscaling<\/em><\/a> <\/em>recommend looking for more <\/em>money than you think you need<\/a> and acting as if you have half of the funding you have access to, as you\u2019re likely to assume a best-case scenario when raising money and underestimate the number of difficulties you\u2019ll face. Additionally, keep in mind that no matter how well you vet a venture capitalist, how well they treat you when you\u2019re pitching them, and how good their reputation is, their goal is not the same as yours. VCs need outsized returns<\/a> on a few companies to make up most of the returns of their entire portfolio<\/a>\u2014so they don\u2019t necessarily care if you fail, as long as one of their companies is a blockbuster.)<\/p>\n\n\n\n

Problem #2: Lack of Work-Life Balance<\/h2>\n\n\n\n

Another problem you may face when building a startup<\/a> is a lack of work-life balance. Fadell asserts that if you\u2019re starting a business, you\u2019ll likely spend most of your time at work; however, it\u2019s essential that you carve out some<\/em> time for yourself so that you\u2019re able to lead effectively<\/strong>. Get adequate sleep, nutrition, and exercise. Devote a few weekly blocks in your schedule for reflection so that you can give your brain an occasional break from work. If you\u2019re overwhelmed with administrative tasks, hire an assistant so that you can focus on leading your team<\/a> effectively. Finally, once the business is up and running, take vacations\u2014and train yourself to let other<\/em> people on your team handle the business.   <\/p>\n\n\n\n

(Shortform note: In Clockwork<\/em><\/a>, Mike Michalowicz warns against Fadell\u2019s approach, arguing that entrepreneurs who involve themselves in their company\u2019s daily operations are prone to burnout<\/a>. This isn\u2019t because they\u2019re neglecting their health and rest or are overwhelmed by administrative tasks. Rather, they don\u2019t have time to improve the company framework (like its daily operations), so small issues<\/a> grow into crises, and the entrepreneurs burn out while trying to manage these crises. Michalowicz advocates developing a hands-off approach<\/a> to your business that allows you to focus on more visionary work\u2014and then taking a four-week vacation<\/a> to force your employees to learn how to operate without you.)<\/p>\n\n\n\n

Problem #3: Catastrophes<\/h2>\n\n\n\n

Another problem you may face when building a startup is some form of \u201ccrisis\u201d or catastrophe. When you encounter a catastrophe, your first priority is to fix the problem. As a leader, you should dive into the everyday work your team does so that you can figure out with them how to fix it. You must also communicate effectively with your customers, apologizing if necessary. Only once you fix the problem should you examine why it happened and adjust your processes to ensure that something similar doesn\u2019t occur again. <\/p>\n\n\n\n

(Shortform note: Other experts support Fadell\u2019s recommendations for dealing with a crisis. In Good to Great<\/em><\/a>, Jim Collins argues that subpar leaders try to shift the blame<\/a> or hide bad news when something goes wrong; in contrast, the most effective executives focus on figuring out and fixing the problem so that the same mistake doesn\u2019t happen twice<\/a>. And the authors of Rework<\/em><\/a> agree with Fadell that you should communicate your mistakes to your customers immediately<\/a> to avoid unwanted media attention. If an apology is necessary, say \u201cI\u2019m sorry,\u201d<\/a> which sounds sincere, instead of \u201cI apologize,\u201d which sounds distant and standoffish.)<\/p>\n\n\n\n

Then, Fadell recommends that you memorialize what happened. The narrative of how you successfully faced and fought through a catastrophe is important to your company; in the future, it will remind your employees that you can fight through another catastrophe because you\u2019ve done it before. (Shortform note: In The Hard Thing About Hard Things<\/em><\/a>, Horowitz writes that you should talk about problems<\/a> openly not because it motivates future employees, but because doing so sends the message that it\u2019s OK to talk about problems<\/a>\u2014if an employee sees a problem, they\u2019ll feel they can communicate it without fear of repercussion.)<\/p>\n","protected":false},"excerpt":{"rendered":"

How long does it take to find the right investors? How do you maintain personal well-being when leading a business? Why should you memorialize business catastrophes? No matter how well your launches go, you\u2019ll likely face challenges in your business. Serial entrepreneur Tony Fadell recommends strategies for three common business problems: a lack of funds, a lack of work-life balance, and catastrophes. Continue reading to learn how to navigate these challenges and come through as a stronger leader with a stronger business.<\/p>\n","protected":false},"author":9,"featured_media":74616,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[45,79,14],"tags":[991],"class_list":["post-100211","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-entrepreneurship","category-management","tag-build","","tg-column-two"],"yoast_head":"\n3 Common Business Problems & How to Navigate Them Wisely - Shortform Books<\/title>\n<meta name=\"description\" content=\"Tony Fadell shares strategies for three common business problems. 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