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December 3, 2017

Big Mistakes Your Small Business Keeps Making: Steps and How to Correct Them


Many small businesses go about their policies the wrong way. Some choose the wrong policies. And some employ the policy of no policy. And in most cases, they don't know the reason for the slow growth and impending death of their businesses. 

There are many prevalent mistakes made by small business owners today. Most of which are brutal and cut through the heart of the business. Granted, mistakes are common and no one is immune. But there are a number of errors that a business simply can't survive for a long time, especially small ones.

Below are a number of mistakes most small businesses are guilty of making. If your business is struggling, chances are you're defaulting in one or more of these cases. So take heed and learn how to curb the ugly trend that is besetting your enterprise.

1. Pursuing current projects and forgetting everything else

The key to business is continuity and most business owners tend to forget this. They put their all into huge projects that they have landed and forget about every other thing: marketing, customer follow ups, and sales.

While it's good to give your projects and clients your all, you'll be making a grave mistake in forgetting that you still need to grow in order to survive.

How to avoid this: set up a marketing team that will be dedicated to bringing in new business while your main team focus on the core part of proceedings. If your business is not big enough for that kind of staff, you can outsource your work or simply allocate part of your work hours to sales and marketing. Bottom line, you shouldn't forget that you need to market! Ever.

2. Not knowing when and how to outsource

Your business is a small one. Sometimes it cannot carry the burden of enormous staff salaries. And sometimes, you cannot do everything on your own! Being resolute and carrying on with all the burdens can drag your business to the ground.

How to curb this: when you notice (you mostly don't have to notice, you have to estimate!) that you are struggling to keep up with salaries, then you should outsource. Use sites like upwork.com, indeed.com, Guru, oDesk and a lot more. You'd find that there are loads of talents at your disposal for relatively lower fees. You can also look for freelancers around your location if that's what you need.

3. Not preparing for the worst

In many cases, all it takes for a business to die completely is one big disaster. There are lots of uncertainties that shroud any kind and size of businesses. And for the small ones, without proper preparation and planing, they can be simply taken by an unforeseeable issue.

Solution: you shouldn't assume that you'll be successful your first year. Set up a good insurance plan for your business in case you meet a loss in your first, or subsequent years (which is normal). A bad year shouldn't mark the end of your business.

4. Cutting down price recklessly

Are you faced with heavy competition? Surely, cutting down prices drastically isn't the only way to entice customers. You can entice customers and still be at a loss. Whenever you slash down prices, are putting other cost factors into consideration?

How you can work around this: you can set up other value added services that your competitor isn't thinking about. You'll be surprised to know that your customers will be willing to pay for more once they know the extras they're getting with a product. All you have to do is be innovative and you can attract a great deal of customers - without cutting down price.

Conclusion

So is your business struggling? Take a lot at all the things you can do differently. Analyse your moves. And if you're still confused, involve a mentor to help. Every business have their lows, all you have to do is learn and thrive!

The views and opinions expressed herein are the author's own, and do not necessarily reflect those of EconMatters.

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