Top 10 mistakes CEO’s make

by | Jan 24, 2024 | Uncategorized | 0 comments

The work of the owner/CEO within a small business remains characterised by intense pressure in everyday work. In addition to keeping their employees aligned to a vision, strong leaders are expected to have all the answers, know what to do, and handle business, often times alone. In particular, the internal complexities of managing a business have been heightened by the turmoil experienced within the external environment from geopolitical tensions, record high inflation and the rise of AI. With the added pressure of having to constantly adapt to the dynamic nature of the external environment to remain competitive, small businesses are spread thin with the business failure rate reaching a 15 year high in 2023. Amongst all this, although it may seem CEO’s have superhuman responsibilities, they are human. Like all of us, CEOs have blind spots that can lead to costly mistakes if they are not addressed.

The most effective CEO’s surround themselves with people they are able to trust and are willing to point out their blind spots or limitations.

Here are our top 10 mistakes CEO’s make:

  1. They don’t manage cash flow effectively
  2. They lack strategic clarity
  3. They don’t communicate how their employees fit into that vision and are unable to delegate tasks effectively
  4. They don’t live or communicate their values
  5. They do not set a clear road map or action plan with their team
  6. They don’t review business results against objectives and previous budgets
  7. They are often unaware of their own or business limitations and don’t create a culture which invites open and transparent feedback
  8. They have poor working capital management
  9. There is a misalignment with stakeholders; in particular are unable to effectively manage and motivate employees
  10. Their inability to take accountability and responsibility for mistakes or failures

While a CEO may seem entangled within their own web of endless work and business ideas, these blind spots can be addressed through appropriate planning and a refocusing of a business strategic direction. By undertaking a detailed and thorough business valuation one can untangle themselves from this, as it allows understanding of the various underlying factors, and how business can be accordingly scaled to maximise its value in the longer term.

At VMG we are all about efficiency within business. We have a new product coming early this year to help guide business owners to understand the value of their business today, ensure growth, and protect against business threats.