As a business owner, I’ve seen it time and time again: entrepreneurs tirelessly working to overcome challenges, only to find themselves stuck in a cycle of addressing symptoms rather than root causes.
In my years of advising business owners and executive teams, I’ve learned that it’s not just about identifying the right problems – it’s about solving them in the right order.
This approach can save you time, money, and a whole lot of frustration.
I recently discussed this often overlooked topic with my co-host, marketing strategist Tonya Kubo, on The Business You Really Want. We covered why tackling issues in the correct order is just as important as identifying them correctly.
The Costly Mistake of Misdiagnosis
One of the biggest pitfalls I see is misdiagnosing business problems, which often leads to significant rework and wasted resources. The last thing you want to do is fix one thing, only to figure out that it was hiding what was really broken. And then having that fix force you to redo all the changes you made that you thought would improve your situation. This cycle of fixing and re-fixing can drain your time, energy, and finances faster than you might realize.
Let me give you a common example:
You might think your business needs new software to improve efficiency. You invest time and money implementing a new system, only to realize later that the real issue was a communication breakdown among team members. Now you’re faced with either adapting to an unnecessary tool or reverting to your original setup – both costly options in terms of time and resources.
The Cash Flow Conundrum
One area where I see businesses frequently misdiagnose problems is cash flow. Many entrepreneurs default to “we need to sell more” when facing financial struggles. However, this approach can sometimes exacerbate the issue rather than solve it.
I like to use the analogy of a leaky bucket to illustrate how businesses can be losing money in small, almost imperceptible ways. Pinholes are the worst, because they don’t seem like very much. They’re little, little tiny holes, and it’s just going drip, drip, drip, drip.
These small leaks can compound over time, creating larger financial issues that aren’t solved by simply increasing sales.
The People Problem That Isn’t
Another common misdiagnosis I encounter is in team management. You’ve heard this story before: A business owner believes they’ve hired the wrong person due to poor performance. They cycle through hiring and firing, never resolving the underlying issue.
In reality, the problem might not be the people at all, but rather inefficient processes or unclear communication. By focusing on the wrong problem (people) instead of the right one (systems), the business wastes resources on constant recruitment and training while never addressing the real issue.
How to Identify the Real Problems
So, how can you ensure you’re solving the right problems in the right order? Here are some strategies that have worked for both me and my clients:
- Seek outside perspective — It’s challenging to see your business objectively when you’re in the thick of it. I can’t stress enough the value of getting input from someone outside your organization or industry.
- Question your assumptions — Ask yourself, “Does it have to be this way?” Challenge the status quo and be open to unconventional solutions.
- Use the “We can, if” approach — Instead of focusing on obstacles, reframe challenges as opportunities. Ask, “We can achieve this if…” to open up creative problem-solving pathways.
- Look beyond the obvious — The root cause of a problem often lies in an unexpected area of your business. Don’t limit your investigation to the department where the symptom appears.
- Be prepared for hard questions — Whether from a consultant, a new employee, or a peer in a different industry, be ready to answer difficult questions about your business practices.
The Power of Proper Problem-Solving
By learning to identify and address the real issues in your business — and tackling them in the right order — you can:
- Minimize costly rework and wasted resources
- Improve team efficiency and morale
- Enhance cash flow and profitability
- Create more sustainable, long-term solutions
Remember, the symptom is rarely the actual cause. There’s almost always something deeper.
Are you ready to revolutionize how you approach problems in your business?
Listen to the full episode of The Business You Really Want for even more insights, examples, and strategies to help you become a master problem-solver in your business.
Don’t miss out on this conversation. It just might help you clear the bottleneck that’s frustrating you most right now.
You can listen to the full episode on Apple and Spotify, or watch on YouTube.
Your business (and your stress levels) will thank you!
About Gwen
Gwen Bortner has spent four decades advising executives and entrepreneurs in 45+ industries. She helps women succeed in business without sacrificing happiness by identifying their true desires and aligning their business functions. She spots overlooked bottlenecks and crafts efficient plans toward sustainable success that center your values and priorities.
