Dave Ramsey On Business

Learning from your mistakes

Smart leaders learn from their mistakes. While it’s always easier (and less painful) to learn from the mistakes of others, messing up once in a while is inevitable. Hey, no one’s perfect, right?

Many of the best lessons I teach at EntreLeadership Master Series are culled from mistakes. I messed up, the mistake caused us pain, and I vowed never to make that mistake again. Remember, you will make mistakes. But making mistakes and learning from them is crucial to winning.

With that in mind, here are a few of the most common leadership mistakes and how to fix them.

Fear of …

A small amount of fear is a healthy. It can be a motivator that makes you stop and think before making crucial decisions. When it paralyzes you, however, it becomes a huge problem.

How do you get past this kind of fear? First, recognize the possibility that these fears could be well-founded. Some decisions could cause you to lose money, customers or even team members. Still, you can’t let vague possibilities drive and control the decision-making process.

Instead of worrying about it, devise a plan that carefully addresses your concerns. Set a deadline, gather facts, and devise options based on worst-case scenarios. Having detailed plans and contingencies in place greatly reduces fear and eliminates uncertainty of the unknown.

The quick hire

One of the biggest mistakes business owners make is hiring personnel too quickly because they need someone. In many cases, this creates even more problems down the road because you’ll find yourself in the unenviable position of having to hire for the same position again!

At my company, we run people through the gauntlet before they’re hired. This includes an average of 10 interviews, a personality test, and a meet-the-spouse interview. Take whatever time is needed to find that perfect person for the job, and get the right people on the bus the first time. The result of this level of scrutiny will be a company full of stars and a very low turnover rate.

Control freak syndrome

Yes, I know. That company is your baby, and no one can do things that need to be done better than you. Wrong! In order for anything to grow bigger and stronger, it must be allowed to stretch its wings. Whether you’re talking about your company or your children, this means letting go.

Trust your team members. Step back and let them fly, no matter how nervous it makes you. No one can perform up to their fullest potential when they’re constantly micromanaged. The only exception to this rule is when they first come on board. New hires should be heavily micromanaged at this stage, but only until they prove their competency and integrity. I call this “training.”

Trust me, there are many more mistakes you’ll discover on your own. Never let them hold you back, and never give up. The wealth of knowledge you’ll gain as result will become a foundation that will help you and your business grow and thrive!