Small business owners make several mistakes when it comes to running their enterprises. Sometimes these mistakes have little, if any impact on their operations, other than being a nuisance to staff or the owner. In other cases, they can cause significant problems that can threaten the existence of the business.
This article looks at the mistakes small business owners make.
1. Buying Products / Services Based On Potential Sales
While this is sometimes necessary, it is not always wise to buy products based on potential sales that you have no record of. The main reason for this is that if you don’t have any cash reserves your business can quickly get into debt and subsequently it can damage the reputation of your small business.
Instead, ensure that any purchases you make based on future sales predictions, are well founded; i.e. know that you are definitely going to achieve those sales because you have numerous leads for them. Don’t just expect it because you are offering a new product, you need to know the money is going to be there.
2. Forgetting Your Suppliers
Not paying suppliers can be a marketing disaster. The worst form of negative PR is word of mouth and you don’t want potential clients put off your services because you are late paying or a rude customer. Keep all your communications professional and quick and ensure you have a robust payment system.
In addition, ensure that your supplier management is top notch. Regular communication is essential for this and can yield good results. This can have several benefits, as being a key client can often lead to discounts and good marketing opportunities. Also, it can persuade your suppliers to be your customer too. This could lead to agreements which reduce your bills further.
3. If You Build It, They May Not Come
Many small business owners believe that once they have started operating then consumers will find them and want to buy from them. The problem is that the digital market is a crowded space and unless you have premises on the busiest town street; you are unlikely to get noticed unless you start marketing online.
You should also make sure that you market your business before it starts. Compare it to when a new major building is created; there are adverts for its grand opening, months before the event. You need to consider the same.
4. Customer Experience Is Everything, Price Isn’t
Customers don’t return to your services because of a price. In fact, many consumers will rather make a purchase from a supplier they know will provide an impressive customer experience. This also means you have to treat your customers well. For every negative experience that customers receive, it takes 12 good experiences to undo the damage.
Regular and professional communications is the key to this. Set up email marketing and follow up schedules.
5. Don’t Forget To Relax
Being a small business owner can sometimes be stressful. Stress is not good for your creativity, productivity or the quality of your work. One of the best ways to beat stress is to increase your relaxation.
Therefore, take time out of your business and ensure that you doing something you enjoy. This will refresh your mind and ensure you are returning to work at optimum efficiency.
Conclusion On Small Business Mistakes
Being a small business owner can be challenging at times. There are a number of mistakes which many owners do make; however, many of these can be avoided if you know what to look for. By avoiding these mistakes you can cut costs, improve revenue and enjoy managing your business more.
What is the biggest mistake you’ve made with your small business?