The hardest decisions are often to decide what NOT to do

In most companies, we usually talk about doing more, going faster, growing. This is all good as long as you are capable of doing this. Sometimes companies need to take a step back and really focus their energy, do less (but better) and take the time to succeed. So what are some of the reasons for stepping back?

Dear old burn rate

It is very hard to build a company without investing ahead of the curve, but there is such thing as investing too much. The lifeblood of a company is the cash you have on hand. Without any cash, nothing can be done. Companies need to have their finger on their pulse at every moment. Do you know how much cash you have? How long can this last (i.e. cash flow forecasting)? How long before you can get back to break/even? Most entrepreneurs that are afraid of losing control (the good old 51%+ ownership) don’t realize that as soon as you are running out of cash, you lost control – not matter how much you own of the company.

This is your third strategy in 8 months

If you are constantly reacting to market and customer demand, it might not be a good thing. Execution of a strategy takes time to deploy and measure. If you keep changing the direction (and focus), it is hard to everyone to make this a success. So if every quarterly offsite is a reason for a new direction – maybe it’s time to step back a little.

Sales funnel of one offs

If you sales team only brings in these one of a kind deals and can never find a way to repeat the same kind of sales, you have a big problem – this won’t ever scale and will make it impossible for you to grow the business. You need to get more leads of the same kind, with the same length of sales cycle.

Making hard decisions

Yes, this is only a few of the reasons that should force you to take a step back. Now it’s time to make the hard decisions: what NOT to do. This is as important as what you want to focus on. Many companies spend way too much time debating about specific projects (“should we be doing it or not”). You need to create an environment where it becomes easier to say NO on things that do not fit your plan – no matter how big an opportunity is. This is also called focus.

Sometimes you need to cut

Saying NO is also saying NO to losing money. There should never be any comfort in burning cash – no matter how big your project is. Ignorance about your real cash situation is borderline suicide. Just hoping that things will get better or that elusive deal (or funding) will come just in time to save the situation is quite a dangerous proposal. If you are running short on cash and don’t have visibility on when the bleeding will stop, you need to cut. It’s hard. It’s painful but someone has to do it – don’t wait for others to make the decision for you.

Be honest

The best trick when it comes to making hard decisions is to be honest. Saying no to a deal that is no longer good for you. Informing employees that you had to make hard decisions about staffing. Shelving a new product idea that was so promising. Honesty is usually the best tool to explain the situation. I remember once that I had to let go of some employees and while this hurt and was difficult; one employee actually thanked me. Not for being cut of course; but because I had been honest with him about the situation and why I had no choice but to let him go. It rarely happens like this but you will be far more respected if you tell the truth than to invent any bogus reason that is only designed to protect your own personal image.

Quick tips on user experience for your web site

For most companies, a web site is a fundamental tool of marketing and lead generation. It all began in having a site to showcase your products and services, and then you had to have an online store. Not to forget to ever-elusive blog page. And lately, you now must have a social media presence, from tweeting to liking pages on your site. But across all the must haves and checklists of things we must do, we often overlook user experience. What makes your site compelling to visit? Why should I come back? I am finding what I am looking for that will make me buy what you do? Online marketers should take a break from tracking unique visitors you are getting and measure instead measure the user experience. While this can sometimes be measured in terms of bounce rate, you can simply take a stroll on your site like if it was the first time. You might discover a few problems. Here is my quick list of usual suspects:

Target users

Who are you selling to? You better understand the buyer persona that you are trying to attract. For example: making a hip and snazzy looking site that is targeted at finance people might not be the right approach (they most likely will prefer a simple design with immediate access to stats and visual dashboards on ROI, etc).

Focus on message

What is your website saying? Visitors should get a good understanding of what you do and why you are relevant in a few lines (think of your cocktail pitch put on a web site…). Unless I am crystal clear on what you do and why I am here, you will need to educate me about your value proposition and competitive advantage.

Every page is a landing page

Don’t spend too much time just tuning the main page. While being the first page that many people will see, today’s search engines bring people directly to the relevant page as much as possible. Don’t assume that people will all start from the same place. Every page should have a meaning and an ability to quickly put the visitor in context.

Minimize navigation

Everybody hates searching on a web site for what they need, even more when you need to click a handful of time to just get started. Again, if you know you buyer persona, you should be able to place everything they needs within one or two clicks. While adding a search bar can be convenient, it is not the right way to fix a faulty and confusing web site.

What are you looking for?

If you are looking to capture leads or sell a product, make this an obvious and simple process. Many companies will ask you to fill a form in order to download something, make the process as enjoyable as possible. For example, don’t ask me to fill in something and then get someone in inside sales to review my request. People in today’s world expect downloads to be automated. Nothing more frustrating than to wait for a couple of days and then getting someone trying to sell me something before I am ready. There is nothing wrong in trying to convert business, just don’t make it annoying or painful.

Keep testing your site

Managers spend a great deal of time testing a brand new web site and then they go away. This should be an on-going process; to make sure that everything is running fine, that the user experience is not broken (don’t wait for someone to email you if something does not work, fix it before).  Getting regular focus groups is another good way of making sure you have not missed the mark. Even more when your site is your primary source of revenue generation; you can’t afford to have a bad user experience.

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