Why Small Businesses Fail: Management


A senior mechanic in oil and gas industries can easily make $120,000 per year. He knows exactly how to fix engines, start gas compressors and commission 1000 horse power diesel generators. Staff control system engineer makes about $160,000 per year to build facilities with automation to process food, cosmetics and hydrocarbons. There are more people such as these who’ve made good living working for corporations.


One day, they decided to take the bull by its horns. Get rid of the corporate red tapes. Exorcize corporate free riders. Leave the snails to eat the dust.



Fast forward to six months. Let’s say John now just got a $250,000 contract. He hired five personnel to do the project. He hired them on the spot, for he believes these are the best people he could find on the market.




The next day, however, these people are not doing anything. One guy is on the phone. Another updating LinkedIn. Another busy decorating his desk. You get my point. John is just frustrated that these people are not working on the project.


John called an emergency-all-hands-on-deck meeting. He asks why does he feel like no one is interested in the job. He promises to pay them on the next pay cycle. He shows the Purchase Order is real. He utters out how disappointed he is with the approach that everyone is contributing to the company. After presenting his opening statement, John asks again,”…so why don’t any of you do any work?”.

One guy speaks for them all: we don’t know what you want us to do.


Many new born entrepreneurs have the boldness and the funding to start the business but some have never been a manager in their lives. It is imperative to understand being a manager is a critical element in being a business owner.

Workers are only great when managed properly. A famous quote, “there are no bad students only bad teachers”, the same in post education realm, “there are no bad workers just bad leaders.”


As managers, it is our job to provide directions of what we expect of our employees. Share the vision. Share the mission. Share the goals. Give tasks. Get resources. Offer help.


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