Even if you think you’re a veteran when it comes to setting up a business, running it will require experimentation. You may believe you have developed the world’s best business plan, with infallible approval from industry leaders regarding your product or service, but in the end much of your time and effort requires trial and error methods to get things right.
As your business grows day by day you will want to do everything you can to avoid simple mistakes that can really hurt your bottom line, so who better to learn from than other business owners. Here are five common mistakes that you will want to avoid at all costs:
Trying To Be The Jack-of-all-Trades
A big mistake that is very common amongst new business owners is trying to do it all. Funds are very tight at the beginning of your venture so hiring people to do certain tasks is sometimes not an option which makes it understandable that you would want to do as much for yourself as possible. As you grow though, be sure to remember that you can’t be the expert at everything. Recognise that you can’t be the specialist in accountancy, responsible for all of your taxes, and do all of your daily graft. Take time to hire the right people for areas you need help with.
Forgetting Call Answering Services
So you have set up telecommunications within your business, but who’s there to capture leads once your business has closed for the day? Even in this day and age, many businesses do not use a call answering service. If nobody is there to pick up the telephone, this often leads to missed opportunities as people will search for the next service. Small business telephone systems are crucial in the early years. Be sure to configure a telephone system that captures leads outside of normal working hours.
Employing the wrong people
Employing the wrong people can be a nail in the coffin for small businesses. One common problem includes hiring family and friends. If you encounter turbulent times, it will become very difficult to keep your personal relationship separate from your business interests. Even when you do, the chain of command could be compromised if your friends have a sense of entitlement to making decisions that should be only made by you. Relationships can become fragmented as you make decisions that are best for your business, but are taken personally by those which have a personal relationship with you. Avoid doing your friends or family a favour and only employ those which will add value to your operation.
Similarly, not employing skilled people to do the job required can also be equally limiting. Instead of hiring extra workers, it is better to hire one skilled worker. It is faster, and works out cheaper which can often be overlooked as it may appear more sensible to hire more people to tackle a larger workload.
Not Interpreting Your Market Properly
Not understanding your market sector can cripple your business. Many small businesses go bust because they don’t understand their customers. You may think you know what’s best for business, but don’t be naive in thinking what you know is correct. Even if your service is excellent, you need to be meeting your customer’s needs and requirements for them to buy your services. Before jumping into deep waters, do your research and talk to people already in your market niche and learn from their mistakes before making your own.
Assuming Customers Know Your Business
Again, small business owners often make the mistake of assuming that having a good offering will result in instant customer interest. The problem is, nobody will buy from you if they don’t know you exist. It has never been more important to get your business online by setting up a website, establishing a social presence, and having a marketing budget. Make yourself heard by whatever advertising channel you feel will work best to build awareness for your brand.