5 Common Small Business Mistakes
Effective business leaders set the right direction for their companies; constantly convey their company mission and philosophy to their customers, employees, and stakeholders; and inspire their employees to go above and beyond in meeting the needs of the company and the customers.
So with all of this responsibility, it is easy to understand how budding entrepreneurs often make various mistakes when it comes to running a successful small business. This is why it is so important for business owners to anticipate mistakes before they happen, learn from current errors, and feasibly do whatever is possible to prevent them from recurring.
Achieving this can mean the difference between having a profitable business or having one that can leave you in financial ruin for many years, according to Mike Michalowicz, who is considered an expert in small business along with being the author of the book entitled, “The Toilet Paper Entrepreneur”. Accordingly, this article will examine some of the biggest mishaps
that many company owners often make and things that you can do in order to help avoid some of these blunders.
5 Common Small Business Mistakes
1. Trying To Do Everything By Yourself. One mistake that is frequently made by small business owners is to try to do it all by themselves. There is no way that one person can successfully juggle every facet of business simultaneously. Instead, it is best to hire people in your company that have strengths in the areas where you are weak. In fact, most companies that have the greatest longevity are known to be specialists in certain areas instead of trying to master absolutely every possible product angle.
2. Reducing Prices In Order To Get More Business. Many times, ambitious capitalists often resort to cutting prices when times get rough. Although it seems like the right thing to do, very often it can result in cutting salaries or downsizing employees that are actually needed to help build up your business. Most customers will pay more for a quality product that is very convenient to purchase and that will make their lives easier. So, increasing your price on a quality product can actually amplify the number of customers that you greet at your door during your business day.
3. Refusing To Take Any Time Off. Although small businesses have greater challenges when it comes to getting a business off the ground, it is counterproductive to focus all of your time on the business. When your personal life is put on hold in order to pursue your business, both the business and your personal life will eventually suffer. Just like an Olympic athlete must take breaks, get plenty of rest, and eat a well-balanced diet, a crucial balance is necessary when it comes to running a business. Instead of becoming so overwhelmed, it is best to focus all of your energy and concentration in short increments. The end result is that you will actually manage both your business and your personal responsibilities much more efficiently. Otherwise, you will most likely burn out, and then you could lose everything.1
4. Failing To Properly Market Your Own Unique Brand. In order to beat your competitors, you must differentiate your product from all the other businesses that are fighting for their share of the target market. Customers need valid reasons to purchase your product over all of the other widgets that are available. Competing merely on a lower price will not do you any favors in the long run because customers who buy only based on the lowest price are often a tiny part of the market and are also the least reliable in regard to future sales. In fact, they will often leave you immediately and run to a competitor who offers a lower price than you do. So, be sure that you have a unique product that is valuable in terms of meeting the needs of your customers in the most efficient way possible.
5. Trying To Sweep Problems Under The Rug. There is an old saying that states, “You can’t do wrong and get by.” Far too often, managers attempt to ignore complaints from customers in order to enhance their businesses. This is a major business mistake Any criticisms and protests should not be overlooked because they serve as a chance to repair defects in your products and develop a better relationship with customers which often results in repeat business.2 After all, statistics show that the average disgruntled customer will tell around 9-15 others about their negative experience with your company, and this is bad press that you simply do not need to have.3 In addition, the companies that choose to overlook complaints are the first to fail during financial slumps and/or when other competing companies open their own businesses and provide better product choices.2
So, although mistakes are an inevitable part of learning, hopefully these tips will be useful in avoiding some of the common pitfalls that are typically experienced by many small businesses. Always remember to pray, keep God first in all things, and read your Bible in order to set yourself up for success. Passages such as II Corinthians 9:8 are a good place to start in regard to your company. The verse states, “God is able to bless you abundantly, so that in all things at all times, having all that you need, you will abound in every good work.”4 May your business be prosperous and may you have great success!