Develop a winning formula in overcoming your competitors. That’s the slogan every small business owner should post on its cash register. Owning or managing a small business can be very gratifying. However, challenges and obstacles pop up almost every day. Those impediments stand in the way of making money, attempting to please the customer base, and inspiring the staff.
Many times, management mistakes cause these problems. So, here are some common errors that a small business owner/manager should avoid.
- Failure to Establish Understandable Objectives and Tactics: Many small businesses place “the cart before the horse.” That means they don’t have clear cut objectives and tactics. Without a written plan, a business experiences the problem of determining what’s working and how it can be measured. With no GPS, the small business owner/manager becomes “lost” in its direction leading to misused time, materials, and energy.
- Unproductive Financial Supervision and Cash Flow Difficulties: Every small business owner/manager needs to stay on top of business finances in order to avoid any cash flow difficulties. If the financial statements are not correct, it becomes very challenging for a business to determine what steps to take regarding income and expenses. At the same time, with appropriate cash flow forecasting a business can prepare for those low cash flow periods and high cash outflow times. Implementing comprehensive financial management operations enables a business to make sure it properly oversees its funds, reduces cash flow problems, and ultimately prepares for long-term success.
- Ignoring Market Research: Ignoring the opportunity to implement market research can lead to potential business problems. For example, a business could find itself with a variety of financial issues if a new service or product does not line up with the wants and wishes of customers. The end results could be missed chances, unproductive marketing strategies, and an overall waste of money! It’s important for every business to spend the time and energy in developing a comprehensive marketing plan which coincides with its goals and clearly communicates its ideas with its current and potential new customers. It’s a refrain every business should follow. Plan the work and work the plan.
- Growing Too Quickly: Most small businesses look for ways to grow in sales and size. However, potential problems could result if a business grows too fast. The inability to handle expansion could place a strain on the resources and fabric of a business. A business should be sure it can withstand the growth before taking the “expansion plunge.”
- Disregarding Technology: Even though it can be overwhelming and daunting at times…technology is not going away. Therefore, every small business must accept technology from automation and analytics to artificial intelligence. Otherwise, that business will be left in the wake of its competition. The fear of the unknown can be daunting. However, the benefits can be plentiful leading to an efficient business which provides an outstanding customer experience and competitive advantage.
- Misjudging the Importance of Staff: The most important strength for every business is its people. That’s why employees must never be taken for granted. As a result, every business must emphasize its hiring practices in recruiting, training, and retaining the best people. Bad employee morale and high turnover rates will occur if a business does not make human resources a top priority.
- Insufficient Marketing and Branding: Marketing is crucial to get your business noticed and attract customers. Productive marketing initiatives aimed at your specific target audience is the key to success. Wasting time and money on ineffective marketing ventures will not build a brand that attracts and retains good paying customers.
- Stuck in the Past: There’s one constant every business can count on. Without question it is change. Customer wants and needs change on a regular basis. As a result, every business needs to look ahead, rather than live in the past. Remaining relevant equals business survival. Therefore, staying up-to-date with technology and industry changes is a must for business longevity.
- Terrible Customer Service: Overlooking or disregarding relationships with customers will surely lead to the demise of a business. Taking customers for granted is sure to bring a loss of recurring business, possible recommendations, and damaging reviews. Failing to offer top notch customer service or addressing customer issues is the perfect recipe for business bankruptcy.
- Customer Confusion: Fickle management statements and decisions can result in customer confusion. Constantly changing the goals of a business can cause an uneasiness with both employees and customers. Change is part of the landscape for a business. However, it is critical for an owner or upper management to plainly spell out its business goals to employees and customers. Stability and steadiness will ease the anxiety for everyone.
Become Proficient in Defeating the Competition.
Looking for a challenging venture? Owning and operating a small business rank right at the top of the list of challenging endeavors. However, management slipups adds to the challenges. Learning from those mistakes and preventing them from happening again are vital in order to develop a winning formula in overcoming your competitors.
