What best practice can ruin your business or hamper your growth
Managers and business owners will intentionally never adopt harmful business practices, yet the application of certain time-tested, so-called ‘best practices’ can do more harm than good to the stability and future growth of your company.
Here are 5 seemingly profitable best practices ideologies that must be identified by smart managers as useful but not valuable for the uninterrupted growth of their company: -
1. A Blast from the past
Business owners find assurance in the fact that best practices are age-old safe methods that have been universally adopted and continued down as an industry tradition, when the reality is that the market is highly dynamic; the cause and effect of the era gone by will not apply to the modern day market forces. As an entrepreneur, you need to understand that what has worked in the past might not work now.
Example: Earlier entrepreneurs set up their SMEs through self-financing or unorganized financial institutions. Many novice entrepreneurs even today adopt this obsolete best practice, when there are many banks and NBFCs that offer small business loans for business expansion and creation.
2. I mean, it has worked for them…
Your business gurus or top leader’s successful implementation of an industry best practice to their maximum benefit shouldn’t be a reason for you to assume that it will yield the same results for you as well.
Example: Newer e-commerce companies tend to overstock their inventory (ignoring their real-time sales) after adopting marketing techniques similar to their competitor. While the competitor’s marketing message might have successfully bought them high sales, expecting similar results just because it worked for them is sheer ignorance.
3. I have complete faith that this will work for us!
Your experience and confidence can sometimes get the better of you. Your set of beliefs regarding what wouldn’t work and what would, can dictate your business methods for the worse.
Example: Film distributors generally believe that a star-studded cast is solely responsible for a film’s success. This blind faith will make them invest heavily in the promotion of the film sidelining the others. Come the D-Day, the star cast might be helpful in big initial collections, but the movie will eventually fizzle out as a loss.
4. The more the routine, the more the rot
While best practices can give satisfying results in the short term, the longer you stick to it and the more you’ll repeat it, the greater will be the damage done. You need to start living in the zone and accept the fact that something(s) will never work for your business!
Example: Keyword stuffing could boost your website’s content and ranking only till 2006. Doing it now could give your content a slight push, before ultimately being taken on by Google’s panda and Penguin.
Practice makes perfect! It is only through continuous practice that a manager will eventually be an expert at identifying worthwhile best practices, eradicating the outdated strategies and adopting only the best to maximize the business’s potential and profitability.