Why Small Businesses Fail - Saturday, February 18, 2012

I love The New York Times Small Business Blog “You’re the Boss.” One blogger is Jay Goltz, owner of five small businesses in Chicago. His top ten reasons why small businesses fail in his January 5, 2011 post are worth noting, especially Reason #2, which is: “Owners who cannot get out of their own way.”

Mr. Goltz suggests these owners may have qualities that make it difficult for them to notice mistakes that need fixing, qualities such as stubbornness, fear of conflict, perfectionism, greed, self-righteousness, paranoia, or insecurity. I call this owner blindness.

Some examples, which I’ve come across recently, point to owner blindness when it comes to their customer service staff. And, this is especially true if they are family or friends. My favorite small cafe has a front door that hangs open because it doesn’t have an automatic closer. This wasn’t a problem for patrons when the weather was warmer. Now it has become an unpleasant dining experience and no one seems to step up to fix it. Our florist hired a delivery person who smokes in the van. After a full day of riding in the van, my Valentine’s Day roses smelled like -- you guessed it -- cigarette smoke. And finally, a new bistro near my house offers morning rush hour coffee and pastry take-out. But they don’t have heat sleeves for their coffee cups. The counter person seems confused that customers balk at this inconvenience. Simple problems with simple solutions, if only the blinders were removed.

I imagine small business owners are often overwhelmed with the “big picture” and don’t appreciate what they see as customer complaints about insignificant things. If a customer is willing to give feedback, it pays to investigate the cause of their dissatisfaction. This is where having conscientious and alert support staff can make or break the business plan for success.


Deb Davidson
Associate, E. Sue Huff & Associates

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