The 3 Stages of Failure and How They Can Boost Your Home Business Profits: Part 1
In life, you’re told success comes from perseverance and hard work. This mantra is especially relevant if you’ve just started your own home business. Sticking with something is the only way to succeed.
But I’m here to challenge that notion. Failure is not something to be feared. And, if failure happens, it’s not as simple as just giving up. It’s actually a very useful process, which can tell you a lot about how you learn, what works and what doesn’t.
This week, I’ll be talking about the three stages of failure, and how they can help you perfect your home business.
STAGE 1: Failure of tactics
These are also known as the ‘how’ mistakes. They happen when there aren’t proper systems in place, when you get lazy with details, or you’re working with inaccurate research.
Say you want to work from home running an errand service. You have a clear vision (to make money running errands for customers) and a good strategy (there’s an unmet demand among older Australians who struggle to remain independent).
Despite your best intentions, you find yourself answering phone calls at all hours and jumping from one task to the next. This home business idea is making you a stressed wreck.
What’s lacking here are processes. A step-by-step guide for each stage of your business. There’s one for handling client requests, payroll, etc.
How does this help?
Stumbling at the beginning shows you the weak spots in your home business. You’re able to identify problems with your processes and take steps to fix them.
Without this “failure”, your home business wouldn’t have been able to succeed in the long term.
What can I do to make sure it doesn’t happen again?
1. Record your processes
Coles has almost 800 stores and 100,000 employees nationwide. But they’re still able to train new workers easily, without hindering the success of their company.
That’s because they have solid business processes in place.
Every detail of the business is recorded. So, new employees are able to carry out their roles smoothly, simply by following predetermined steps/protocols.
2. Measure your outcomes
To succeed in business, you need to know what works and what doesn’t. That’s why it’s important to measure the outcomes of marketing, customer experience, quality of service, etc.
You can do this by asking for customer reviews. Take note of what customers do and don’t like about your business, and let that feedback shape future efforts.
You can also measure the effectiveness of your marketing by looking at social media statistics.
Facebook provides detailed reports on who looks at your page, which posts are popular and which ones aren’t. This will allow you to tailor your social media strategy more effectively.
It’s also helpful to look at customer retention. If you have repeat and long-term customers, it’s a good indication your business processes are working.
You can read more about how to measure the success of your business here.
3. Review and adjust your tactics
The important thing to remember is that business processes change over time.
As your home business grows, you need to be constantly reviewing and improving how you operate.
Fixing failure of tactics is an ongoing job.
PS: Stayed tuned for Part 2, released in The Esky tomorrow…