According to the US Small Business Administration, nearly half of all new businesses don’t make it after five years and it is important to know and be aware of basic strategies right from the start. Small business just like all other businesses will require extreme caution in decision that that are being made, all aspects that could affect the business are to be considered thoroughly. Mistakes should be avoided at all cost. We have collected 5 common mistakes that caused downfalls of small businesses.
1 Thinking That Your Product Will Sell Itself
Your business could be selling or offering the best product or service in the world, it may be the most sensational and top rated in the industry, but if no one knows that it exist, it will not sell. The product alone will not go out into the world to introduce itself. A good comprehensive and well thought of marketing plan is necessary for a small business. People should be informed that your products exists, and that they can take advantage of your service. The modern technology gives business owners broader options of reaching out to the masses thanks to the Internet and Social Media, but like business gurus claim, nothing beats the power of generating business through word-of-mouth. A small business owner may start from his local community.
2 Doing It all By Himself
Being a jack of all trades could be possible for some aspects of a person’s life, but is not highly advisable for small business owners. There are small business owners that are having problems with budget that they are not able to hire employees, and resort to doing things by themselves and end up messing and costing them twice or more further. A business owner should recognize that his capabilities may be limited, and hiring the right people for the right type of work is always the best option, to ensure accuracy and effectiveness for the growth of a business.
3 Not Enough Understanding of Finance
A small business owner could be excelling in planning or conceptualizing great ideas, or another business owner could be great at hands on and managing their service or product, but lacks enough knowledge about finance. No great decisions will come up for the betterment of a small business without an adequate knowledge of the numbers. Numbers is what runs a business. A small business should never overspend or underspend. Also, keeping an eye on your bank balance is very important. According to Murli Ravi, the Co-Founder of Unicorn VC said that a business owners may run out of money even if revenues and profits are coming in.
4 Customers Are Taken For Granted
Customers are the ones paying the bills so business owners should know what the customer wants, how they want it, and how to keep them satisfied to keep them coming back. Loyal and satisfied customers tend to bring friends, thus allowing your business a much larger scope. Creating a customer survey is one of the most effective technique in getting to know customers. There are a lot of survey options available online. What’s important is that a business owner should know how to reach out and maintain his customers.
5 Employees are Taken For Granted
A business no matter how small should never take its employees for granted. Just like customers, employees are one of the most important factors because they are the hands and feet of the organization. Bad treatment to employees will have a domino effect that will affect the service level given to customers and that would cause bad reputation, or bad feedback that simply means bad business. Employees should be aware of their job expectations, they should have and proper tools and training, and should be rewarded for excellent jobs rendered. Happy and satisfied employees will directly affect the quality of their service and they will be able to give better or exceptional service for your customers.