There are a hundred different things that can happen, but not all of them are fatal. On the other hand, there are a few – maybe 1, 2, or 3 – that can stop or even completely derail your business in an instant.
Often, we pay attention to a hundred little things. Our attention is scattered. But what’s truly important is to keep one or two things in mind all the time – those that can be fatal.
Bottlenecks, red flags, worst-case scenarios - shit that you really don't want.
Some call these things red flags, worst-case scenarios, fundamental risks, or similar terms, but I like to call them bottlenecks. Think of these critical issues as the narrow neck of a bottle that slows down the flow of your business.
Supply chain or inventory is a bottleneck
Let me give you some examples that have happened to me and my fellow entrepreneurs. For instance, when we were manufacturing high-tech toys for kids, the package consisted of parts from different parts of the world, with a significant portion coming from China. If the supply was disrupted or if any essential component stopped being produced, that would have undoubtedly been a bottleneck for us. That’s why we chose components that could be easily replaced – mainly universal parts produced by multiple companies. Many large companies operate in the same way. As a child, I often noticed that different brands of electronic devices contained the same components. The automotive industry operates similarly. Many different car brands have entirely different cars with the same engine, chips and other parts inside.
You see, in cases of manufacturing companies producing physical products, supply availability becomes a bottleneck.
Advertisement channel and placement is a bottleneck
Next example: A colleague of mine runs several online retail stores. Since he heavily relies on advertising, he constantly maintains multiple websites or profiles. They [meaning his websites and especially his social media profiles] can get banned and deleted in a second. By the way, this happens much more often than you’d think, not because the site violates any laws but because these mega-companies act like sheriffs and do as they please. Despite being the biggest companies on the planet, almost no laws apply to them. It’s the Wild West in every sense. It’s utterly unimaginable that a monopoly corporation, which accumulates hundreds of billions yearly, including your and my advertising money, has no customer support number or physical office. But that’s how it is. A bottleneck.
Key people are a bottleneck
Next example: Imagine one person in your company is an expert in a very specific aspect of the business that no one else knows. That’s great to have such a person. But what happens if they get seriously ill for several months or if they leave the company? You see, this is another critical bottleneck that almost all companies face. To avoid this risk that can jeopardize your business, it’s essential to prepare a training program in advance that allows for the transfer of knowledge to another person in a short period. Ideally, this training should be prepared by the person currently handling those tasks.
There are many other potential bottlenecks depending on the industry and the company. In any case, it’s crucial for you as an entrepreneur to be aware of these major risks, keep them in mind, and take necessary measures in case they occur.
What are your bottlenecks?
