In the business world, most people are afraid of failure. What they don’t understand though is that success can be as dangerous. First of all, while failure is something people fear and even expect, they are usually unprepared for success of greater proportions. Most people who are new in the business world don’t know how to behave in this new set of circumstances and it is the lack of an adequate plan that destroys them completely. In order not to allow this to happen to your company, here are five reasons why success can be as dangerous as failure.
1. Failing to Adapt
Just because you have managed to triumph over your competitors at one point doesn’t mean that you have discovered a secret recipe to success. The reason why customers preferred you over your competitors is because you had something new to offer. Now that your success is public, everyone will start mimicking your business methods and you will have to find a way to adapt. People who fail in their efforts tend to look for ways to improve, while those who succeed start feeling invincible, which, in turn, makes them lazy. Needless to say, the list of businesses that hit rock bottom by failing to adapt is limitless.
2. Inability to Follow-Up
During your first few months, you are bound to put in the most effort. This will respond well with your clients, but it will also raise their expectations beyond your capabilities. You see, when your business is at its peak, your clients become accustomed to a particular quality of service. Even the slightest decline in this quality can result in an outrage and this may cause your customers to start massively abandoning your brand.
3. Investing Too Much
When you earn a lot, it may seem as if there is nowhere but up for your business. This is why a lot of people use all their funds to invest in their business without keeping any work capital. Leasing a new office, hiring new employees and getting new equipment costs a lot, but business owners that have recently felt the thrill of success rarely think twice about the costs. The reason for this is that they expect future profits to be able to cover all their expenses. Unfortunately, this is not necessarily what will happen, and you might face a serious solvency issue. In order to deal with these cash flow problems, most startups either apply for a loan or turn to invoice funding.
4. Making Promises You Cannot Keep
If you are managing a company that has achieved an overnight success, people will see you as some kind of miracle worker. Considering this new reputation of yours, new clients may set impossible deadlines and ask for services you cannot possibly fulfill. Even though they don’t know your full capacities, you shouldn’t hesitate to refuse any task you know you can’t fulfill.
5. Creating Envy in Others
Finally, the more you climb, the more enemies you will have. In most situations, their envy won’t do you any harm, but as soon as you make even the tiniest misstep, things will change. Of course, their gloating may not matter, but they can also ensure that everyone knows of your most recent botch. This can earn you a negative reputation in no time.
Success and expansion bring a plethora of problems you didn’t have to deal with before. Opting for a bigger office, hiring more people and making new deals are all tricky ground and you will have to watch your step. The most important thing in this situation is to stay levelheaded and don’t let your recently upgraded ego cloud your judgment.