We all make mistakes, it’s human nature. As a small business owner, certain mistakes can slow growth or decrease your chances of success.
- Losing Focus. Experts agree that the most detrimental mistake is loss of focus. With all the daily tasks in front of us, most being the daily routine of performing the tasks of ownership like managing employees, overseeing production, working with customers and clients, paying the bills, and growing the business, we tend to focus on a narrow set of tasks instead of devoting time to help the business grow and succeed.
- Wearing Too Many Hats. When business owners think they have to do everything themselves, productivity suffers. Great managers are great delegators, whether it’s knowing which tasks staff can handle or simply outsourcing time-consuming tasks that can and often should be done by someone (Hint: DL MoneyManagers) else.
- Failing to Strategize. Running a business takes time. Business owners often work much longer hours and more days in a year than the average worker. And never having time to quietly analyze where the business is now, where you want it to go, developing a roadmap to success, and documenting a set of strategies that can take you there…well, this too often takes a back seat.
- Doing Everything Yourself. Whether it’s brainstorming with a management team, a partner, a client, or a mentor, you have a much better chance of growing the business and meeting goals when you don’t try going it alone. Delegation also makes employees become better thinkers and more loyal to you and the success of the company. When you do what you are good at, and delegate the rest, you have more time to brainstorm how to set your business apart from your customers and gain important market advantages.
- Underpricing. Since the advent of the Internet, savvy buyers (your customers) can easily get an idea of what to pay for your product or service by searching similar offers online. Buyers often say that competitive pricing is the most crucial feature influencing a purchase decision of good or services. Include this fact in any decision to drop prices. Better to determine to keep prices fair so you can deliver a better product or service. This doesn’t mean you can’t discount unused or outdated inventory when appropriate, just don’t drain your margins or tarnish your brand with too many sales and discounts.
Promotions get attention and may attract new customers, but discounting during an inflationary economy, like these current times, can be bad for business. Try other ways to increase sales like: announce a price increase, bundle goods or services, create community on or offline. Rather than a sale price, consider a free trial period. Finally, believe in your people, customers, clients, and especially yourself.