As a business founder, owner, or CEO, you are faced with a multiplicity of opportunities. The allure of a new project or partnership can be tempting, but there is a critical question you need to ask: “Is this opportunity really right for our business?” If it is not, you might find yourself stuck in a scenario where the “great opportunity” ends up being a burdensome mistake. You can avoid that trap by achieving true clarity around your business focus.
“Yes” May Be the Wrong Answer
There are various pressures that can cause you to say “yes” to an opportunity and later regret it. For instance, the hope of growth and fear of missing out can lead you to take on a project even though it is “a little out of our wheelhouse.” Your business’s bottom line may be in a precarious position, making you think, “This may not be ideal, but it is income – let’s take what we can get.” Even ego can factor in: “This is a bigger endeavor than we have ever done, and it will look great in our portfolio.”
To bring this to life, consider a cutting-edge software firm that has a reputation for excellence in their niche market. Driven by the potential for new revenue streams, the founder decides to venture into hardware manufacturing. The leadership team agrees that the prospect of creating a new line of smart devices seems promising.
However, the challenges associated with the company’s foray into hardware manufacturing are bigger than they anticipated. Their team, skilled in software development, lacks the expertise and infrastructure needed for hardware production. The new projects require significant investment in research, development, and manufacturing processes that are outside their core competencies. What was supposed to be a lucrative opportunity quickly turns into a capacity drain and a source of frustration. Employees feel strained and stressed, leading to decreased job satisfaction and staff turnover. The previously dynamic, energized culture becomes deadened. Software innovation suffers. Profitability begins to spiral downward.
Finding Clarity and Alignment
For the company in the above example, the excitement of entering the hardware market overshadowed their core competency in software development. To avoid playing out such a scenario in your business, implement these five actions:
- Define Your Core Focus: Identify what your business does best and what you are passionate about. Are you a leader in a specific industry? Do you have a unique skill set that sets you apart? Define this core focus and use it as a filter for evaluating new opportunities.
- Align Your Team: Ensure that your team understands and supports the company’s core focus. Alignment is key to maintaining morale and efficiency. When everyone is on the same page, they are more likely to be engaged and motivated.
- Evaluate Opportunities: Before diving into a new project or partnership, assess whether it aligns with your core focus and business goals. Consider the resources required, the potential impact on your team, and whether it will stretch your capabilities too thin.
- Make Tough Decisions: Sometimes, saying “no” is the best option. It is essential to have the courage to turn down opportunities that do not fit with your core focus, even if they seem attractive. This will help you stay true to your mission and avoid the risks associated with overextension.
- Communicate Clearly: Transparency with your team about why certain opportunities are being pursued or rejected can help build trust and understanding. When your team knows the rationale behind decisions, they are more likely to be supportive and aligned with the company’s direction.
In the end, focusing on what you enjoy and excel at will lead to better outcomes both for your business and for everyone in it. By sticking to your core focus and making deliberate decisions about the opportunities you pursue, you will achieve greater success and maintain a more positive work environment.
So, the next time a “great opportunity” comes your way, take a moment to evaluate whether it is truly a fit for your business. If it is not, it is okay to let it pass. You will be glad you did!
