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Best Habits for Entrepreneurs

With 2023 coming to a close, talk tends to turn to New Year resolutions. Personally, I see each day as the start of a new 365 day cycle. Essentially, every day is an opportunity to begin a transformation. However, I do appreciate how the crispness of a fresh year is motivating. To inspire your 2024 resolutions for your business, here is a list of the best habits for entrepreneurs.

What are habits?

First, let’s get clear on the definition of habits. Habits are behaviours and choices you make regularly. These are frequently automatic, unconscious actions, like scrolling through your phone while having that first cup of coffee.

According to James Clear, the author of the groundbreaking Atomic Habits book, research has shown that habits account for about 40% of our behaviours on any given day. And each individual small habit may seem insignificant on its own. However, as it is repeated again and again over time, the aggregate effect is enormous. Think of a leaky tap. It’s just one drop at a time, but after enough hours pass, the sink would overflow and flood the room.

This is what I find so inspiring about hagstones – they are proof that small actions over time have the power to create breakthroughs and significant change. Which is why these best habits for entrepreneurs are valuable for service business owners looking to level up in 2024.

Best Habits for Small Business Management

Keeping on top of business management functions is one of the best habits for entrepreneurs. When these tasks slide, it creates problems which can be costly and stressful to resolve. Therefore, it is important to maintain these regularly.

1.Bookkeeping

Ok, this is boring stuff, but it is important. When bookkeeping is updated monthly, financial reports can be reviewed to track budgets and monitor results. This includes monthly and annual tax filings for employee remittances, government tax submissions, and any required reporting.

2. Journaling

The habit of keeping a journal creates space to reflect and brainstorm. It’s useful for small business management as a safe place to record ideas and vent frustrations.

For more, read How to start a journal to increase success as an entrepreneur

3. Taking a break from business

Certainly, it seems counterintuitive to say that taking time away is a good habit for small business management. However, burnout for entrepreneurs is real. So making a habit of time for fun, rest, and relaxation benefits the business. After all, when an owner is exhausted, it negatively impacts their ability to manage effectively.

Best Habits for Team Building

Even a small team benefits from team building. Doing these activities regularly will create stronger communication and cooperation, which improves productivity.

1. Hold regular meetings

This could be a monthly review of KPIs, or weekly share of projects and priorities. Keep it short and meaningful to boost staff engagement.

2. Build a feedback loop

To create a supportive environment, make sure there is a feedback loop to hear from your team. While a structured annual performance management review is valuable, also make regular check-ins a habit. Monitor mood and performance for changes. Give them an opportunity to share concerns and ask questions.

3. Reward and recognition

Does your team know when they are doing well? Make reward and recognition a habit. This can be as simple as sharing when someone has gone above and beyond. Also, you could build a structured system of earning points to be redeemed for paid time off, a cash bonus, or a gift card.

Best Habits for Strategic Planning

It is not unusual for business owners to be so involved in daily operations that no time is spent on review and analysis. The best habits for entrepreneurs in 2024 include these strategic planning activities.

1. Monitor KPIs

Not sure what this is? Read What are KPIs.

How do you know how your business is doing if you don’t monitor metrics? Numbers don’t lie. Make it a habit to regularly review performance, output, quality, and financials. Compare current results with last month or last quarter, and also look at the difference year over year. This is a valuable habit of small business management which drives decision making.

2. Competitor analysis

Make it a habit to keep track of what competitors are doing. For example, if part of your growth strategy relies on a specific competitive advantage, that may shift depending on what your competitors are doing. Smart strategic planning requires understanding what similar businesses are doing. Otherwise, how will you know how to stay competitive, and spot opportunities to grow?

3. Review market and sector

Also, regularly check in with trends and changes in your sector. Consumer expectations shift over time. And changes in technology impacts productivity and profit margins. Therefore, make it a habit to stay informed and up to date with political, technological, and societal changes that impact your strategic plans.

Overall Best Habits for Entrepreneurs

As shown above, actions repeated regularly over time creates meaningful results. By making these activities a habit, entrepreneurs develop strong business management skills. Remember that where your business is now is a direct result of habit and behaviours of the past. Finally, embrace these habits in 2024 to level up and grow your business.

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The Myth of Multitasking

Leadership, Reflections

For a long time, I believed in the myth of multitasking. I carried around my exhaustion proudly. Every chance I had, I waved it like a flag to show that I was doing many things, all at the same time. And our culture rewarded that. Friends called me a hero. It encouraged me to add another spinning plate. But gravity always wins, and so it all came crashing down. If only I knew then what science has shown us about what multitasking does to our brain.

The meaning of multitasking

First of all, to clarify what I mean by multitasking. Strictly speaking, talking to our kids while we drive is multitasking. Or cooking dinner and listening to music. These routine life activities are not the topic here. This is about entrepreneurs multitasking activities that grow and manage their business. For example, doing bookkeeping while listening to a marketing podcast. Or scanning email while listening to a pitch from a potential new supplier. Also, working with two monitors, so that financial reports and resumes from job candidates can be reviewed at the same time. As shown below, this multitasking doesn’t save time at all, and in fact may actually hurt the business in the long run.

Multitasking in Western culture

The myth of multitasking runs deep in Western culture. It may have its roots in the Protestant work ethic. Generations were raised hearing that “idle hands make for idle minds” or similar expressions. As a result, it’s a commonly accepted notion that it’s good to do multiple tasks concurrently is a good thing. There are blog posts and Reddit threads suggesting TV shows and movies to multitask to. Also, it shows up as the Supermom trope in movies and advertising. With multitasking normalized, we just push ourselves harder to get more done.

Multitasking and entrepreneurship

Meanwhile, multitasking and entrepreneurship go together like bread and butter, or cheese and wine. Also, coffee and doughnuts. You get the idea.

Obviously, you just can’t have one without the other, right? And this makes sense because being an entrepreneur is not one role. It’s all of them, simultaneously. This is true for all sizes and stages of a small business. Because even when there is a team of staff, the entrepreneur oversees them all.

Ultimately, the business owner is responsible for the strategic direction and ultimate success of the whole company. Therefore, the ability to juggle a number of projects, ideas, and decisions is important. After all, within any given hour, an entrepreneur may have to deal with a variety of tasks across all business functions. And being able to switch between marketing, operations, sales, and human resources is a skill that benefits all business owners. However, the problem comes when we try to do more than one thing at one time.

The science of multitasking

As shown above, our society values productivity and efficiency. Obviously, these are desirable goals for an entrepreneur. After all, saving time means saving money, which can make the difference between being profitable or not. Especially for new business owners. However, science says we have it all wrong. As a neuroscientist at MIT explained it, “people can’t do multitasking very well, and if they say they can, they are deluding themselves.” Here are 3 big reasons why multitasking is not effective.

1. Brain Overload

Basically, multitasking causes brain overload. Because it takes energy to switch from one task to another. Doing that again and again over the span of a workday tires the brain in the same way that repetitive movement can cause muscle strain. Scientists call it cognitive fatigue. Daniel J. Levitin did groundbreaking research on the topic of multitasking. He explains that prolonged multitasking leads to “a depleted state in which, after making lots of insignificant decisions, we can end up making truly bad decisions about something important.”

2. Increased stress

Switching focus from one task to another causes our brain to release cortisol. This important hormone has a purpose. It’s designed to help us cope with stress. However, it’s meant for emergencies only. As in, a bear is chasing you, so here is a boost of energy to cope with it. Therefore, experiencing regular cortisol boosts is not good for the body. Humans simply were not designed for that. Over time, it has many negative effects, like insomnia, weight gain, diabetes, and high blood pressure.

3. Impaired learning

Lastly, multitasking impairs learning. Specifically, learning new information as part of a multitasking session will stunt the ability to remember it later. This is because studies show that the brain will send new data to the wrong part of the brain. Basically, if you are making dinner while also trying to learn new software, the new information will be sent to a file storage area in the brain that is harder to access later. This makes it more difficult to recall, which slows down the learning process. So when improving skills as an entrepreneur, give the material your full attention. This is an example of the myth of multitasking, because focusing on learning is more efficient for your brain to retain the new information.

Lessons for entrepreneurs

Overall, what can entrepreneurs learn from all this? First, look at how the myth of multitasking shows up in your life and business. Multitasking may be a habit so ingrained in your routine that you don’t even notice it anymore. So spend a week tracking your work activities. Be aware of the times when you are bouncing between windows and devices. Make note of when you are focused on one task. Use the results as a blueprint for how to make changes in how you work. This could be physical, like removing that extra screen from the desk. There are many ways to create more focus. And accountability is important, which is why I highly recommend Flow Club. Scheduling a block of time to work with intention and be with like-minded people is powerful. I often host sessions, so come join me in the Flow!

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What is Pivoting, and Steps for Entrepreneurs for How to Pivot in Business

Books & Resources, Inspiration, Leadership

Sooner or later, an entrepreneur will find themselves wondering – do I need to pivot? After all, few businesses never need to change strategic direction. Frequently, changes in technology and consumer behaviour require adjusting how we do business. In fact, it can be argued that companies who fail to pivot end up, well – failures. Blockbuster is a famous example. By sticking to DVDs and ignoring the rise of digital streaming, they went out of business in 2014. To understand what is pivoting, and steps for entrepreneurs for how to pivot in business.

What is pivoting

Essentially, a pivot is a significant change that impacts the way a business is conducted. A pivot is strategic, not tactical. For example, changing the colour of employee uniforms or redesigning business cards is not a pivot. However, if those changes were part of adding a product line to target a new customer base, then it is a pivot.

Examples of a pivot in business

There are many ways to pivot in business. It could be a subtle shift in pricing strategy to attract a different market segment. Or it could be a major transformation, like eliminating product lines to focus on something entirely new. Here are some examples of a pivot in business:

Implementing new technology

Technology should be upgraded regularly. But sometimes, a bigger shift is required. Like switching from a paper based system to digital processes. This can be a big learning curve for customers and staff who are used to the old way of doing things.

Adding products or services

This is a pivot because it impacts operations, staffing, and marketing. For example, a hair salon decides to offer tanning. A cake shop adds a gift bag package to make party planning a one-stop shop. Or, a landscaping company expands its services to include eavestrough cleaning. Sometimes, these pivots can be achieved with a sub-contracting relationship or collaboration with a local company.

Eliminating products or services

Sometimes a pivot is letting go of something. Like discontinuing a product or service. There may be many reasons for this. If demand declined, it’s easier to just stop offering it. However, it could be supply chain issues or rising material costs which makes that line unprofitable. Then, the pivot would be replacing it with an alternative source of revenue.

Changing existing processes

Pivoting can be changing existing processes in any area of the business. This could be connected to using new technology, like switching to a chatbot instead of using live support agents. Also, it could involve shifting away from automation to a more personalised customer experience. Like, sending out a sales rep to meet a potential customer instead of offering an online quote.

Shifting target market

Another pivot is when a business decides to focus on a different sector of the market. Perhaps this is to differentiate, because there are just so many competitors going for the same target audience. So with a new pricing strategy aligned with updated marketing messaging, an entrepreneur may focus on a different niche. Though the market may be smaller in that segment, often the higher profit margins means it’s better for business.

How to pivot: Steps for Entrepreneurs

Ok, so now that you understand what is pivoting, you may be wondering how to implement in your company. These 10 steps for entrepreneurs will walk you through how to pivot in business.

1. Acknowledgement

First, recognize that it’s time for a change in direction. This starts with acknowledging that something isn’t working in the business. Maybe revenue has flatlined, or profits are shrinking. Or staff turnover is rising, and customer retention is dropping.

2. Acceptance

This step is all about mindset. It is important to accept that the business is going to change. This can be a challenge for entrepreneurs, because a pivot may move them away from their initial vision for their business. Resistance to change is a huge barrier to a successful pivot. So take a moment to lean in and fully accept that things are going to be different.

3. Agreement

Every business has its own structure and culture, so this step looks different for everyone. Essentially, it’s about making sure that key stakeholders are on the same page. Key decision makers should be in agreement about making a pivot in the business. Otherwise, it makes implementation very difficult. This step is about leadership and communication.

4. Brainstorm

Next, it’s brainstorming. Ideally, all stakeholders will be involved in this step. And also, it’s good practice to get some outside perspective. A mentor or a business coach will offer fresh insight and ideas. Step outside the day to day of the business and turn off the phones. Be creative and open to fresh ideas. This step is about getting a list of ideas for how to pivot the business. Also, be clear about the issues the company is facing, and the business goals.

5. Evaluate

Now that there is a list of ideas, it’s time to evaluate. Research market conditions and do competitive analysis. Do a risk assessment of each pivot idea. As much as possible, identify costs, barriers, and problems. All of this data is a guide for entrepreneurs for decision making and implementation.

6. Decide

After considering all the information gathered in Step 5, it’s time to make a decision. As with Step 3, key stakeholders should be involved in the decision making process.

7. Commit

Next, commit. Meaning, fully embrace the decision, and be ready to see it through. There are many failed pivots because entrepreneurs went into it half-hearted. For example, new software was purchased but not all the functions are being used. Or a new product is added without a new marketing strategy to promote it. So commit to the decision and have a positive mindset about a successful pivot.

8. Plan

Now that a decision has been made, it’s time to plan to roll out the pivot. Project planning is a skill, and this is a step which may benefit from some outside help. It is important to have a workflow, a checklist, and a timeline of each step and action to roll out the change in the business. After all, a failure to plan is a plan to fail!

9. Implement

Finally, it’s time to implement the pivot. Depending on the scale and scope of the project plan, one person should be responsible for managing this. Because change is difficult. And implementation involves many steps and moving parts. Communication is so important, so that suppliers, staff, and customers understand what is happening at every stage.

10. Measure

Lastly, measure the results and outcomes of the change in direction in the business. Was the pivot successful? This depends on how success is defined, which links back to Step 1. For example, if the issue was no revenue growth, and revenue increased in the months following the changes implemented, then the pivot was a success.

Conclusion

This summarises what is pivoting, and steps for entrepreneurs for how to pivot in business. Following these 10 steps will guide any business owner on how to identify, choose, plan, and implement a strategic change of direction. A pivot is not a decision to make quickly. Taking the time to analyse, research, and plan will increase the success of a pivot to reach business goals.

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Leadership