Starting your own small business can be a very rewarding experience, both financially and emotionally. But one too many times we see small businesses fail to reach the goals for which they were created. The reason why small businesses collapse is not because they lack the human and financial resources of major corporations, but because of simple mistakes that can be easily avoided.
If you own your own small business or you are thinking about opening one, check the following countdown of the top 5 mistakes made by small businesses. Want to avoid any pitfalls and ensure success? Let’s take a look at our list.
No. 5: Never procrastinate
Because a small business owner doesn’t usually have to answer in front of anyone, one common mistake is procrastinating. Make it a point out of never postponing tasks. Try to achieve something new each day. Start by setting tight but achievable deadlines, so as to keep motivated at all times. If you have any employees, make sure they follow in your footsteps and get things done on time.
No. 4: Failure to capitalize on marketing
Your product and services might bring great value to potential customers, but if nobody gets to see what you have to offer, what use do they have? A frequent mistake made by small businesses is that they underestimate the power of marketing. And the great thing about it is that, in today’s society, one doesn’t even have to invest that much into advertising. Take advantage of social networks and take your business public. If your budget allows you, you can even set up your own web page. Whatever you do, make sure your business is getting the exposure it deserves.
No. 3: Never underestimate the power of crunching numbers
There is a reason why ever single major corporation out there has an accountant. Or better said, a team of accountants. Keeping the books and crunching the numbers is a very important aspect of a successful business, and small ventures sometimes overlook this. For small businesses, it is especially important to look at cash flow, rather than at sales and profits. Unfortunately, the vast majority of small business owners completely ignore this fact. Hiring a professional to keep your books and manage your finances is ideal, but if you can’t afford this right now, don’t despair. Instead, make it a point out of educating yourself on the matter so that you can properly keep your own records.
No. 2: Get rid of the “Bigger is better” mentality
Success has nothing to do with the size of your business. Probably the most common mistake made by small business owners is comparing themselves with big corporations and trying to be more like them. Constantly pushing your venture to compete with giants can have a very damaging effect in the long run. Stick to what you know and do best and never be ashamed of the size of your business. Bigger is not always better. If your company will grow, it will do so slowly and steadily.
No. 1: Build trust and confidence
One of the most important things that will determine if a small business will succeed or not is the quality of the relationships it builds with its customers. More often than not, a small business owner will be glad they made a big sale and will forget to focus on building a relationship with the customer. Long term engagements are the lifeline of a small business and you have to learn how to build trust and confidence with your target audience early on.