One of the best business books I read last year was Good to Great
Even though its focus is on corporations, most of the principles work very well for individual entrepreneurs.
Here’s one of the best tips:
Start a “Stop Doing” list.
Collins noted that the companies he studied which moved from good to great “did not focus principally on what to do to become great; they focused equally on what not to do and what to stop doing.”
In 2005 I eliminated three unprofitable business ventures in order to focus on what I do best that has the most long-term potential. These endeavors were diluting my focus and causing me to expend limited time and energy for less profit.
It just didn’t make good business sense, for example, to devote an entire Saturday to hosting a scrapbook workshop (even though I love scrapbooking) for what might be only $100 profit when I could make much more than that by working the same number of hours editing a book.
When my freelance book editing business was just getting off the ground again when my then-husband left 5 years ago, it made sense to use my scrapbook business to fill in the gaps between editing jobs. Once my editing work was coming in steadily enough to keep me busy all the time, though, I actually lost money by hosting scrapbooking events rather than editing.
I should have quit the scrapbooking business at least one year ago, or maybe even two. But I hung on because: (1) I love scrapbooking, (2) I was sentimental about it, (3) I liked the perks of getting my own stuff at cost, (4) I liked the consultant newsletter, and (5) I really wanted to make it to the 10-year anniversary (it would have been 9 years this March). Those aren’t sound reasons for making business decisions. Yes, it’s important to love what you do, but not everything you love needs to be a business. (I also happen to love editing.)
This was a classic case of the good being the enemy of the best (or at least the better).
So, my challenge to you is this:
What will be on your “Stop Doing” list this year?
Mary Jo Tate
I need to think about this, thanks for posting it. I’m always making lists of what i need to do, but never what I need to stop doing.
I, too, have had to overcome the emotional reasons for staying in an unprofitable business. (Or in your case one that was less profitable than another use of your time.) I’m always having to deal with the way my emotions affect my success, or lack thereof, in business.