Small-business owners: 5 things holding you back

Q: My business seems to be stuck in second gear and I can't figure out how to take it up a notch. I advertise and I network, you know — I do everything I read that I should be doing. And yet, here I am in the same place I was a few years ago. What am I doing wrong?

— Jason, New York, N.Y.

A: I will venture to say that if you are like a lot of small-business owners, your problem is that you figured out what works . . . and then you stopped.

Over the past few years, I've had the chance to meet with tens of thousands of small-business owners and entrepreneurs who have shared with me both their success strategies and their sad sagas. Out of this, it has become apparent that the best small businesses have traits in common; traits not shared by all small businesses.

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Here then are five areas where too many small-business owners miss the mark.

1. Failing to invent new recipes. Think about when you first started your business. You likely were enthusiastic, open-minded and willing to try just about anything to make a sale. Then, after a while, you discovered a strategy that worked, that made a difference.

You invented your recipe for success.

It is akin to the baker who created a great bread recipe that he uses again and again. Your recipe is how you make your "dough," too. It may have been an ad that pulled or a line of products that built your brand.

If you are like most of us though, after that, you stopped experimenting, and therein lies the rub. The best small businesses continue to reinvent themselves, experiment, and add new recipes to their arsenal. Amazon.com started in Jeff Bezos' garage as an online bookseller. Bezos then created some new recipes, and now it sells a ton of different items. That's the idea.

So, consider going back to the drawing board and cooking up some fresh strategies.

2. Missing the big picture. Most of us spend so much time working in our business that we fail to work on our business. But it is the working-on-our-business part that is the most rewarding, and which can make the biggest difference. Successful businesses are based on an owner's vision that is adopted by everyone involved. They know what the business is about and where it is going. They buy into the owner's vision.

When Masaru Ibuka started his once-small business in the bombed-out basement of a department store in Tokyo, one of the first things he did was to create a vision for the business, which included, among other things, the idea that his would be a "place of work where engineers can feel the joy of technological innovation."

His business? Sony.

If you have not articulated a vision for your business, do so — now. You will be amazed how it will focus people's efforts and open doors.

3. Not checking in with your customers. When was the last time you surveyed your customers? Do you know what they really like and dislike about your business? Do you know why they do or don't recommend your business to their friends? Would these not be important things to know? Great businesses do know the answer to these sorts of questions.

So take some time to create a survey and give your clients a reason to fill it out (discounts on your products or services can work wonders in getting people to respond). Learning what they actually think of your business enables you to make better, more informed decisions.

4. Relying on outdated technology. The information-communication-technology-computer revolution that has occurred over the past 20-plus years is the most monumental change to ever affect the small-business world. Not only has it allowed any business to look big (due to PCs and servers, wireless networks, business software, laser printers, Web sites, PDAs, cell phones, and so on), but the Internet has opened up marketplaces, both physical and virtual, that heretofore were impossible for us to tap.

This also means that we simply must keep our technology up-to-date. For example, have you even thought about how a server could help make your business more efficient? Far too many small-business owners think that the investment they made in technology say, five years ago, will suffice. It won't. The only way to ride the wave that is this incredible global opportunity is to have the right technology.

5. Not sharpening the saw. In "The 7 Habits of Highly Effective People," author Stephen Covey explains that when sawing wood, it is important to sharpen the saw regularly, lest the blade get dull and the work become overly difficult.

The same is true in business. When I was a practicing attorney, I regularly had to take continuing legal education classes. Though I disliked them, they did force me to consistently sharpen my legal saw.

As entrepreneurs, we sometimes forget to sharpen the saw. Yet attending business seminars, going to trade shows, joining the chamber — these are all ways to keep our business skills, our saws, sharp.

Why you're hearing from me

Fortunately, I no longer have to practice law, so I don't sharpen my saw that way anymore. Seven years ago, when USA TODAY went online, I was hired to be their lead small-business columnist. It soon became apparent that my ability to write clearly, simply, and with a modicum of humor was more prized in journalistic circles than legal ones. No great surprise there.

My USA TODAY column has since become one of the most highly syndicated small-business columns available today. This has allowed me to write a dozen books, the most recent being "The Small Business Bible." I am also fortunate enough to be asked to speak regularly to fellow entrepreneurs around the world, at conferences, conventions, and workshops.

I have now teamed up with the Microsoft Small Business Center to write this question-and-answer column. So ask away! I look forward to your feedback and to answering selected questions in upcoming columns. My goal is to inform, entertain, and educate. If I do my job right, you will enjoy these columns and sharpen your saw at the same time.

How did Steve answer other questions? Read his previous columns

Steve Strauss is one of the country's leading small business experts, a columnist for USATODAY.com, and the author of the "Small Business Bible." If you would like to have Steve speak to your group, or to sign up for his free e-newsletter Small Business Success Secrets!, visit his Web site. Have a question for Steve? Send him an e-mail.