Identifying the Challenges

"I feel like throwing in the towel almost every week."

"You can't be serious, Ben.* You have two thriving businesses. What do you mean?"

"Rachel, I’m not joking. I feel like I'm on a perpetual treadmill — my team is unable to make decisions independently, we’re always behind schedule, and I’m not engaging in the work I truly enjoy... and I know you can relate because you’ve experienced it too."

I recognized the truth in his words. I had brought on a talented marketer for my startup, yet the implementation felt burdensome. Despite Ben’s success in building two flourishing companies over the past ten years, one would assume he was set for life: everything running seamlessly, consistent income, and a sense of pride in his achievements. Unfortunately, that wasn't the reality.

Ben's predicament is far from unique. I've encountered many companies that find themselves in a similar situation. After years of helping them regain traction, I can confidently state that if you're feeling stuck, frustrated, or contemplating quitting, there's hope. However, you must confront at least one of these four core issues.

Think it sounds too easy? Keep in mind that often, the best solutions are indeed straightforward.

Addressing Issue #1: Your Financials Are in Disarray

Solution: Organize your finances to identify the leaks.

Throughout my experience across ten different industries and various company sizes, I've witnessed numerous tactics employed to convince ourselves that our businesses are thriving. You might have impressive metrics — robust revenue growth, profitable projects, and effective advertising. However, these highlights can sometimes obscure the underlying issues.

To effectively address the stagnation in your business, clarity regarding your financial statements is crucial. The numbers will guide you directly to the problems within your organization. So, take action now.

Issue #2: Weak Executive Functionality

Solution: Cultivate discipline.

The second major reason for feeling stuck is inadequate executive function. What contributes to this weakness? It boils down to a lack of discipline in three key areas:

• Assessing Issues: You're too lax with your numbers — focusing on the wrong metrics or looking at them inconsistently. To identify problems before they escalate, consistently review the right data.
• Diagnosing Issues: You're too high-level in your analysis to uncover the root causes of your company's problems. While numbers serve as a starting point, you need to dig deeper — sometimes engaging with the most junior team members — to truly understand what’s wrong and how to fix it.
• Resolving Issues: While you may provide direction, you must also manage the resolution process. Delegate execution, but remember it’s your responsibility to ensure accountability and timelines are met.

Many claim they lack the time for this. I argue that nothing will change unless something changes.

Issue #3: Parting Ways with Certain Clients

Solution: Graciously let go of unprofitable clients.

Toxic clients can be akin to a harmful addiction. You may be fixated on revenue, but it could be crippling your financial health. I’m not exaggerating — countless companies I’ve worked with have lost money on specific projects.

Common pitfalls include:

• Scope Creep: Performing tasks beyond the originally agreed-upon scope.
• Poor Client Management: Clients demanding more hours than they pay for.

Moreover, these clients can adversely affect team morale. It’s time to have those difficult conversations. Aim for a resolution that works for both you and your client. If that's not feasible, complete the project responsibly, assist in their transition, and learn from the experience.

Issue #4: Evaluating Team Dynamics

Solution: Make the tough, yet necessary, personnel changes.

Out of kindness or compassion, many hold onto team members who should be let go. Beware of two categories:

• Under-performers: Those who fail to meet expectations for their compensation.
• Competent Yet Toxic: Strong contributors who disrupt the workplace environment.

Both groups require excessive management, harming profitability and team morale. Consider placing under-performers on a Performance Improvement Plan (PIP) and exploring internal transfers for those who may be better suited elsewhere. Hiring new talent or even contractors can also provide fresh energy.

Like problematic clients, detrimental employees can hinder your business's progress. It’s time to make the hard decisions.

Ultimately, recognizing the issues is distinct from solving them. The pivotal question you must face is: Are you prepared to make the difficult choices to address what’s causing your business to stagnate — regardless of how uncomfortable it may be? That motivation is essential.

Once you learn to tackle these challenges head-on, the potential for your business is limitless. That’s when the excitement of entrepreneurship truly begins.

See you next week, friends.

Hi, I’m Rachel — a seasoned consultant with over 15 years of operational experience and a former founder and CEO. Throughout my career, I've aided beloved and innovative brands in achieving profitability and scaling effectively. Today, I’m sharing my insights to help remarkable 7- and 8-figure consumer companies thrive. There’s nothing I enjoy more than witnessing great businesses break free from stagnation and succeed.

For further insights or to stay updated, connect with me on LinkedIn, visit my website, or find me on Medium.

Video Insights:

In this engaging short, discover whether your business is stuck and learn actionable strategies to move forward.