As your business grows, the excitement of scaling can sometimes overshadow the potential pitfalls that come with it. Managing these changes requires careful attention to business processes, team dynamics, and leadership skills.
To help you navigate this section, I’ve put together five pitfalls with tips on how to avoid them.
1. Avoiding Difficult Conversations
One of the most common pitfalls in team dynamics is the lack of clear communication of expectations. If team members are unsure of their roles and what they can deliver, this can lead to confusion, frustration, and ultimately decreased overall productivity.
We experienced this at RealWealth a few years ago. The employee has been missing goals and quarterly team meetings and frequently turning around sub-projects, affecting department morale and productivity. I hoped that the problem would solve itself, I held back, but in the end I had to let the person go. They were shocked, and the conversation became emotional.
After that, I promised that I would never let that situation happen again. I committed to using the techniques in Kim Scott’s book Radical Candor (a great book!), which provides a plan to show your employees you care while still directly challenging them. We also improved our performance review process and now have one per quarter.
My advice: Don’t let problems fester; be clear about expectations. Onboarding is the best time to define and discuss employee expectations. When employees pass the 90-day mark, review your expectations going forward, and ask if anything needs to be clarified. Taking the time to be open and caring will help you avoid misunderstandings.
2. Not having written procedures in place
Assuming that someone knows how to do a job can lead to misunderstandings and misinformation that can hinder projects and teamwork. Before assigning someone a job or project and assuming they have the right skills to complete the job, create a plan that gives everyone a knowledge base. Whether you’re a team of three or 50, writing processes position the company and its employees for long-term success.
Here are the key points:
- Ask employees to create written procedures for the tasks they perform regularly.
- Procedures need to be documented or in video form; the key is to clearly define the steps of the project or task.
- Once completed, employees have a visual guide to complete tasks across the organization.
- Store these processes in a digital hub (Dropbox, Google Drive, Tranual, etc.), giving all employees access.
- Share with relevant employees or new hires as needed.
- Review procedures annually, as systems used or steps taken may change.
Having a system for breaking down how-tos is an important tool. It ensures that your team has the information they need and that they won’t be overwhelmed when an employee moves on or goes on leave.
3. Not Being a Curious Leader
Curiosity is a powerful trait that can significantly shape a leader’s effectiveness. However, many leaders overlook the importance of curiosity and how its absence can contribute to stagnation, missed opportunities for innovation, and disengaged or disengaged employees.
Kathy and I learned the power of curiosity early in our business thanks to a RealWealth employee. She managed our live and virtual events and helped Kathy stay on top of priorities and pressing projects. When we discovered his love was art, not real estate, we were afraid we might lose him.
Instead of letting fear control our emotions, we became curious. Kathy asked how we can support her in following her passions. The result was victory. He decided to continue working for us, and on the side, built an award-winning app and blog about street art. A few years later, when his priorities shifted to travel, we explored working remotely.
Our willingness to be open-minded and give employees the freedom to do things that matter to them allowed us to see the power of asking simple questions to get to the heart of the matter. All it takes is asking a few questions to learn how you can help your team be happy and fulfilled.
Here are five questions to get you started:
- What do you want? I mean what do you really want?
- How will your life be different if you have that?
- What can you do to have it?
- If anything could stop you from this, what would it be?
- How can I best support you?
4. Taking Leaders Know How to Lead
Leaders are an important part of an organization’s success. As a business owner, it’s important to understand the fundamental role you and your leadership team play in creating a successful, cohesive organization.
As a seasoned business coach, I’ve worked with many senior executives in leadership and micromanagement. This style degrades your team. Instead of working at their best, teamwork is lacking, and so is enthusiasm.
As a leader, you must control your ego, listen, and be ready to develop your skills. Here are some things to keep in mind:
- If your team is not working well, look at yourself and your leaders first. It may start well from top to bottom. Is there something missing that you don’t see? Is there a mindset shift that needs to happen?
- Be prepared to examine yourself and your leaders deeply and compassionately. What areas or skills can be improved?
- Leadership is a developed skill, so give yourself and the leaders in your company opportunities to develop. This can take the form of seminars, reading, coaching, mentoring, and (most importantly) practice.
When you find a leader who embraces growth and learning, they will make everyone happy and help take your business to the next level.
5. Thinking My Company’s Vision Will Motivate The Team
One of the most common pitfalls in building a lasting team is assuming that your vision alone is enough to motivate, inspire hard work, and inspire loyalty. While a strong vision is undoubtedly important, relying on it alone can lead to a lack of engagement.
In the early days at RealWealth, we needed to define our goals, so Kathy and I created a goal to “help 50,000 people create real wealth.” This goal inspired our team, but we decided to take it further by including it in the ideation process.
We asked our team to imagine what the business looks like 10 years in the future and the positive difference it has made for our customers. This process created many of the things we have today, such as:
- Helping our members achieve over $3.5 billion in real estate by 2030
- Donating 10% of our profits to life-changing charities
- Creating a quarterly profit sharing plan for all employees
- Helping our team invest in real estate and become a career of choice
We dramatically changed the team’s performance by expanding our focus on what we, as owners, could achieve in the business to what our team could achieve and created a company culture with dedicated employees.
Final thoughts
These are just a few of the pitfalls I have encountered over the past few decades. While some can be avoided entirely, the key is to recognize them and get around them sooner rather than later. A thoughtful approach that includes having tough conversations, documenting processes, staying curious, encouraging growth, and engaging your team in your company’s vision strengthens your team’s foundation for long-term collaboration and success.
Increase your wealth and free your time.
Take your business to the next level with this “accessible, smart, and life-changing” guide to holistic sustainable growth for entrepreneurs and investors (Tal Ben-Shahar, Ph.D., New York Times best-selling author of With joy).
A Note About BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BiggerPockets.
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