Everyone makes mistakes from time to time but making too many mistakes or not learning from previous mistakes could mean that your company must shut its doors forever due to the unsustainability of the business.

Here are a few common mistakes that business owners make as they develop their strategic plans and some solutions to help you avoid making them in the first place:  

Mistake 1: Not using enough data

Sometimes organizations will only use surface-level data like stats from the previous year to inform their decision-making.

Using only shallow data can lead the company to insufficient revenue, low or even negative profit, or use of inappropriate strategies.

Solution: Dig deeper into available data

Use data from multiple years and various sources to establish trends and help you make an informative and well-thought business decision. Establish good record-keeping habits like constantly updating data and sharing it within your team to help prevent mistakes stemming from shallow data.

A good rule of thumb is to use data from the past three to five years to help make decisions.

Mistake 2: Not utilizing team members effectively

Sometimes business owners miss out on valuable help from their team members, either by not giving them the right tools, assigning them tasks they aren’t suited for, or not using them at all. This often stems from not asking for team members’ input and involvement in the development of your strategic plan.

Not involving your team in discussions as you develop your strategic plan can lead to missed business opportunities, reduced support, and lower morale and partnership.

Solution: Connect with your team members 

Your team wants to help your company fulfill its mission. You might want to empower them with the right tools and support.

Start by asking them to identify barriers to involvement in the creation and implementation of the plan. Then, ask for their input on the best way to overcome each obstacle. Then, meet with each team member individually to identify specific skills and areas where they can support you in reaching your company’s goals.

Once you discover what’s blocking your team member, offer solutions like additional resources or skills training. Empower your team to best use their own skillsets for the benefit of your company’s strategic plan.  

Mistake 3: Trying to do too much

It might seem like a good idea to try and have as many initiatives as possible or to develop strategies around multiple channels. The reality is that there is no shortage of good ideas but there is a shortage of time, staff, resources, etc. Overextending can lead to ineffective results.

Solution: Focus on doing fewer things well

Are you familiar with the 80/20 Rule? For business owners, it means that 20% of what you do every day is generating 80% of your total annual revenue. In other words, you’re only doing a few things daily that make you most of your money.

Instead of chasing every opportunity, stick to your company’s strengths and focus on the initiatives that move the needle to drive value, revenue, and profit. When you balance your resources and stick to your plan, you will likely have a more effective impact.

This article is intended to help you make wise decisions when times are uncertain so that you can stabilize your business.