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These five areas are what this author calls "the fatal five. These are errors made by individuals who do not follow standard operating procedures or companies that have never established set procedures and clear processes to follow. Clear standards are essential in the error reduction process. Many companies continue with a high level of errors because they have no model to set the standard for production or performance.

Helping the whole team commit to the standard is a vital but often overlooked component of small businesses. A necessary step in overcoming processing errors is to explain to all team members why the standard process has been created and why it is essential that the team member follow it. Great companies work to build effective and repeatable processes. Companies that spend time on process improvement often find a higher level of buy-in from employees. When employees are engaged in following and then improving the processes, a company will realize real profits and a reduction in processing errors.

Equipment and its components can and will fail.

1. Doing It All By Yourself

Every item and every person has a limited production capacity. Companies experience a higher level of errors when people or equipment are pushed past their capacity to produce. When a part has reached its capacity, it is doomed to fail. When people are past their level of capacity, they also tend to make more errors. It is imperative that every leader and every organization know which parts and people are critical for success and what the limits of those vital parts are so that a plan can be put into action before unnecessary errors are committed. The proper care of equipment can extend its life and usage.

Companies that wish to provide continuous operations will learn the art of redundancy. Smooth operations occur when every aspect of production has a backup in case of failure. A backup or contingency plan ensures that production won't lag if something goes amiss. Many things can hurt an organization's production, from a late employee to a breakdown in the system. To ensure smooth operations, emphasize the critical aspects of production. Good processes and good planning make for great companies.

CEOs and leaders should review production methods and metrics to ensure operations are running at peak performance.

5 Mistakes That Can Kill a Small Business

They never go into debt for them. Anyone who has listened to Dave for more than two seconds on the radio knows he is the number-one enemy of debt.

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  4. 1. Processing errors!
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But that's just for home, right? Actually, no.

10 Cashflow Mistakes That Can Kill Your Business

Dave believes that businesses can operate successfully without borrowing as well. His company, plus many others both big and small, runs every day without borrowing.

  • 10 Cashflow Mistakes That Can Kill Your Business!?
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  • Debt magnifies your mistakes, kills your cash, and puts your business' very survival at risk. It should be avoided at all costs. These steps are just a few of the many principles needed to successfully run a business.

    5 BIGGEST AMAZON FBA MISTAKES that will RUIN your Business Before it Starts! DON'T Make These AVOID!

    Make time to keep your financial house in order, and you will always reap the rewards. This article originally appeared in the EntreLeadership Advisor , Dave Ramsey's business and leadership newsletter. Sign up now to get it delivered straight to your inbox twice a month. Back Home. Back Get Started. Sign Up Now. Jumpstart Your Business.

    5 fatal mistakes that will kill your business | AZ Big Media

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      Viewing outsourcing as a pure cost reduction game

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