Impact Lab has a post that offers sound advice for any small business.
However, before I get to his advice, I need to offer a critique. The premise of the advice is that 80% of small businesses fail. Guess what? That is an urban myth. There has never been a study that shows this high a failure rate -- ever. Some studies using flawed data showed as high as 60%, but they count a business that is sold as a "failure". If the company no longer existed, it was counted in the failure column. Now with better data the studies indicate 40-50%. And remember, with training and education these failure rates drop to 15-25% in other surveys.
Now back to his advice.....
The title of the post, "Your Baby's Ugly..and You've Got Bad Breath," really tells the whole story. Entrepreneurs and small business owners tend to surround themselves with too many cheerleaders, too many "Yes-men" and Yes-women." That is a recipe for bad decisions that could have been avoided.
You need to have someone, (preferably more than one person) who will tell you when you are wrong. Someone who is not afraid to take your most prized idea and tear it apart. Someone who will tell you that your decision is dead wrong, when it is dead wrong.
If this person is an insider, all the better. For some entrepreneurs their spouse or some outside adviser plays this role.
Just find someone who is wise enough to know when you when you are wrong, and brave enough to say it.
