Some business mistakes can be detrimental to your growth if you ignore them.
Mistakes do happen, and they aren’t just for new businesses. Many businesses that are still making money, even if they’ve been around for a long time, are still making them. They may be losing money or wasting a lot of time. Even though some of these big and sneaky mistakes seem to be more geared toward service-based businesses, they impact almost any type of business. Below, I’ve tried my best to show businesses’ challenges.
Mistake 1: Not Having a Clear Business Niche – Defining Your Offerings Very Broadly.Most entrepreneurs fear that they will be leaving money on the table if they specialize and offer their services to a select niche. If you do not define your niche, you will not be able to articulate the value you are providing and will not be able to attract the clients you can serve the best. Hiring a Business Consultant in Mississauga or business coach can give you a head start in identifying your niche and benefiting from it.
Mistake 2: Spending on Advertising and Marketing Without a Proper Follow-Up System.
I’d almost prefer that my clients didn’t promote at all than that they spent money without tracking the results. There’s no use in running a marketing campaign if you don’t have a system to track how effectively it’s performing. Another mistake many entrepreneurs make is failing to follow their previous successful marketing initiatives. Some entrepreneurs believe that a $1,000 monthly ad budget will automatically work every year because it worked successfully for one busy season.
Mistake 3: Setting Prices Without Calculating All Costs.
It’s a common mistake to use a competitor’s pricing as a benchmark without first understanding why they use those figures. Picture this, if you take a competitor’s price, reduce it by 5%, and then begin selling. What if your competitor has a poor pricing strategy and is barely profitable, if not losing money? What if your expenses exceed theirs? You can utilize competitors as a starting point, but not as the only basis for your pricing strategy. There are business consultants and specialists who can help you figure out the cost of goods sold and the allocation of other overheads to the product or service. Before setting the price, it is critical to consider all costs.
Mistake 4: Failure to Have Solid Systems and Procedures in Place.
If you don’t have proper procedures and systems, your company could lose money due to inefficiencies, rework, lack of accountability, and inability to take the available opportunities. To manage a successful business, business owners must determine the minimal procedural requirements. Billing, collections, payroll, HR management, manufacturing, running and maintaining equipment and inventories are just a few examples of where procedures or systems are needed.
Mistake 5: Not Getting Professional Help in Time.
Not getting professional help or waiting too long can detrimentally impact a business. Most people who start an enterprise do it because they have solid technical capabilities or selling ability. If you know the best way to make a product, then your strength is in production, and that is where you should focus your time and energy. Hire an outside company or consultant to take care of the sales and marketing, and then hire staff internally when you can afford someone full-time. Don’t be something to your company that you are not. It will simply stifle your progress.
Mistake 6: Spreading Yourself too Thin – Not Having a Core Team.
Not getting a core team in place is a common mistake many business owners make. The goal is to recognize when you’ve reached the “wearing too many hats” stage and seek assistance. The approach is to understand your capabilities and to be able to identify when you are not performing tasks that require these abilities. You can’t get caught up in day-to-day operations if you’re the top salesperson in the organization. If you do, your sales will suffer, and you will finally have no operations to worry about. Consider the following to see whether you’re overworked: Did you truly go into business for yourself to work 60+ hours a week
Mistake 7: Not Planning for Growth.
Being too involved in the business and stretching yourself too thin will eventually burn you and the company out. Be aware that an entrepreneur, besides being a doer, is also the creator of the business. Either your business is growing, or it is stagnating. A stagnant business will eventually start diminishing. Spend time on the company, and work with a business coach or an accountability buddy to brainstorm, strategize, plan and implement initiatives that foster growth.