• Home
  • Blog & News
  • What to do when you’ve made the wrong investment for business growth
What to do when you’ve made the wrong investment for business growth

What to do when you’ve made the wrong investment for business growth

Earlier this week, the South African Minister of Finance presented the Medium-term Budget, and the news was somewhat disheartening. Government’s plan to dispose of some of its well-performing shares in Telkom, to offset its recapitalisation of South African Airways and the South African Post Office, is just bad planning. It’s akin to avid entrepreneurs who believe wholeheartedly in their business, but can’t let go of investing time and money into a bad idea, no matter the consequences. Time and money are finite resources, and pouring them into a bad investment can destroy your business. On this week’s The Money Show, we looked at how you can hit the brakes on a bad investment and start making the right type of investment for business growth:

Ditch the MBA Approach

Textbooks and research may offer you some guidance in building a business, but in sustaining it: truth is found in action. Rather than creating a large plan for building your business, adopt a lean, agile approach and take many, small, steps towards growth. That way, it’s easier to change course if you need to, and far simpler to curtail any activity that isn’t showing positive results for your company.

Get your ego out of the way and build your self-awareness

Building your business is a highly emotional experience and, as a committed entrepreneur, so much of your life revolves around your company. That’s where the passion for your business comes from. But, during a business crisis, getting your ego out of the way is critical. Perhaps you feel like you might be giving up, but managing a crisis within your company isn’t quitting – it’s adapting and responding to a problem. Don’t let your ego prevent you from listening to the truths you need to hear about your business.

Go to the honest source of truth

If you really want to know how well your business is performing (and you should!), ask your customers. Find a long-term, trusted customer and invite them to lunch – don’t just set a meeting. You’re far more likely to hear the truth behind their experiences with your business, in a relaxed environment.

Get an external party involved

There’s a very fine line between persistence and obstinately pursuing a bad investment, and finding that line can be difficult. Find someone you trust and respect, who will be able to offer you an objective perspective on your business. Ask for their input on answering these questions about your business venture that’s not paying off: Is it not paying off because the timing is wrong/the technology isn’t ready for it yet/or because it’s just not a great idea?

Devise multiple plans

Start crafting multiple plans for dealing with your business problem, and getting rid of the bad investment you’re in the middle of. By making multiple plans, you’re equipping yourself to be more objective about your decision, and removing any emotional attachment you may feel towards this investment you’ve made. It’ll also assist with helping you figure out which investment for business growth you should be pursuing instead.

Build memory to motivate you

Keeping a journal of what you do for, and within, your business, will help to motivate you in the future, and build a case of evidence for your future business activities. You’ll find that some activities are repeated, and be better equipped to eliminate elements that don’t work, more quickly in the future.

Collect the data

Reporting systems are a vital component of your business. Put reporting and data collection mechanisms in place from the very first day, and create a robust system that records every activity, and its outcome. That data tells the true story of your business – don’t be afraid to read it.  

Use your team

No man is an island, and no business is built into an asset of value with just one person. Talk to your team members and ask for their input on potential problems, and listen to their ideas on possible solutions. By including your team in decision-making processes, you’re giving them ownership over parts of your business and, through responsibility, comes energy and commitment. With a committed team on your side, that’s determined to solve your business problems, you can get through just about any crisis.

Get over yourself

Mistakes are made every day, all around the world. You’re not the only one who makes them – remember that! The important part of making mistakes, is that you learn from them, and avoid making those same mistakes in the future.

How do you know when you’re making the right choice for your business?
Aurik can help, and guide you towards making the right type of investment for business growth.

Tags: In the News, The Money Show, Growing, Strategy, Accelerating Growth

KVD: A fisherman’s tale
Building your Business Business Growth

KVD: A fisherman’s tale

American Kevin VanDam is one of the top-ranking bass fishermen in the world with two Major League Fishing Cups, four Bassmaster...

Read more

How to build your business: Break it to build it throughout the growth cycle
The Money Show Building your Business

How to build your business: Break it to build it throughout the growth cycle

You build your business within the context of your business environment. When your business environment changes more rapidly...

Read more

More small business growth insights from GrowCo
The Money Show Business Growth

More small business growth insights from GrowCo

On The Money Show with Bruce Whitfield, Pavlo Phitidis shared further small business growth insights, gleaned from attending...

Read more

Learning lessons from the GrowCo conference

Learning lessons from the GrowCo conference

GrowCo gives attendees the opportunity to learn from the best in the industry with more than 600 people attending – including...

Read more

Reflections on Small Business Growth from GrowCo
The Money Show Business Growth

Reflections on Small Business Growth from GrowCo

On The Money Show With Bruce Whitfield, Pavlo Phitidis shares what he learnt about small business growth, scale, competition,...

Read more

Characteristics of a business owner’s spouse can  be make or break
Asset of Value Business Development Family Business

Characteristics of a business owner’s spouse can be make or break

What’s it like to be the significant other or the spouse of a business owner? People generally believe that when you are...

Read more

Turning a sweet start into a smart start: Making money from honey with your start up business
Business Opportunities The Money Show Start Up

Turning a sweet start into a smart start: Making money from honey with your start up business

What happens when your small side business suddenly shows a whole bunch of potential? How do you turn a hobby into the startup...

Read more

Creating a Succession Plan for your Family Business
Succession Business Succession Succession planning

Creating a Succession Plan for your Family Business

The statistics are terrifying. A mere 28% of family businesses, across the globe, successfully move from founder to next...

Read more

How to break a bad deal and not break your business
The Money Show Business Exit Exit strategy

How to break a bad deal and not break your business

Britain broke market access with BREXIT, and Trump broke the Iran deal with just a tweet, but neither seemed to consider...

Read more

Strategies for Business Growth that Go Beyond a Blind Belief in Brand Value
The Money Show Business Strategy Strategic Planning

Strategies for Business Growth that Go Beyond a Blind Belief in Brand Value

No business is ‘too big to fail’. Blind idealism didn’t work out well for Kodak, and now another iconic brand is filing for...

Read more

Identifying and Preventing Burnout when You’re a Business Owner
The Money Show Growing business value Building your Business

Identifying and Preventing Burnout when You’re a Business Owner

Burnout creeps up on you like the Dementors of Harry Potter fame. You may not see it at first, but it slowly takes over and,...

Read more

Big Questions from Business Owners Like You
The Money Show Growing business value Growing Business Systems

Big Questions from Business Owners Like You

The Money Show with Bruce Whitfield, Pavlo Phitidis set out to answer some big questions from business owners, like you:

Read more

Small Business Financing: To Debt, or Not to Debt?
Business Opportunities The Money Show Business Growth

Small Business Financing: To Debt, or Not to Debt?

Finding the right small business financing solution for your growing business is critical. Is going into debt the right option...

Read more

How to Protect Your Margins & Grow Your Business in a Cost Inflationary Environment
The Money Show Accelerating Growth Business Growth

How to Protect Your Margins & Grow Your Business in a Cost Inflationary Environment

Everyone is beginning to feel the pressure of an increase in VAT, petrol levy, and other price increases. Rising costs will...

Read more

The Key Components of Collaboration
The Money Show Building your Business Business partnership

The Key Components of Collaboration

While we’ve been looking to fill 13 positions within our company, Pavlo has also been dealing with several international...

Read more

How to Present Yourself Online
The Money Show Building your Business Strategy Online business

How to Present Yourself Online

How you present yourself online is an all-important component for your personal, and business, brand. On this week’s The...

Read more

Business Accelerator 2018
The Money Show Business Development Building your Business

Business Accelerator 2018

Business accelerator programmes can be great catalysts for your growing business. Getting the right kind of help as a business...

Read more

How to get the right headspace to survive and thrive in tech-driven opportunities and change in your business
The Money Show Building your Business Business Growth

How to get the right headspace to survive and thrive in tech-driven opportunities and change in your business

Increasingly, technology plays a deeper and more pervasive role in business, and in our lives. Importantly, technology that...

Read more

Building the future we want as business owners in SA
Business Opportunities In the News Positioning your Business

Building the future we want as business owners in SA

South African entrepreneurs can play a big role in bringing the promises made during this year’s State of the Nation Address...

Read more

Kushesh Express, achieving rapid growth in a competitive environment
Growing business value Asset of Value Building your Business

Kushesh Express, achieving rapid growth in a competitive environment

Kushesh loosely translates to “very quick” and is a fitting name for courier company Kushesh Trading, which services the...

Read more

Innovation and Entrepreneurship
Blog In the News The Money Show Innovation

Innovation and Entrepreneurship

I recently hosted an innovation workshop for more than 100 franchisees and a franchisor of a well-established, successful...

Read more

Small Business Venture Capital Investments: What You Should Know
The Money Show Growing business value Building your Business Business Systems

Small Business Venture Capital Investments: What You Should Know

Section 12J investment funds are an attractive option for investors. When first created during the mid-1990s as part of the...

Read more

Build Your Business with these 5 Habits
AoV Mindset The Money Show Asset of Value Building your Business

Build Your Business with these 5 Habits

Welcome to 2018! A whole year ahead, to plan, implement, and prosper. I hope you had a great break, and were able to gain...

Read more

What Entrepreneurial Opportunities Await in 2018?
In the News The Money Show Growing Strategy

What Entrepreneurial Opportunities Await in 2018?

The tumultuous events of 2017 have already shaped the entrepreneurial opportunities for 2018. The innovators respond first,...

Read more