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Entrepreneurs - 7 Business Mistakes You
Must Avoid
Many mistakes can be made in business and if you are able to avoid some
of them by reading and taking note of these warnings, then the time taken
to put these together will be worth while. Here are some business mistakes
that are common to many entrepreneurs..
- No plan
Many people go into business without any plan at all. The old saying that "if
you don't have a plan you won't know when you've got there" still holds true
today. You need to set up a business plan and that plan will contain other
subsidiary plans such as a marketing plan, a finance plan, a sales plan,
etc.
- Be flexible
If you have a business idea and you are looking at developing that into your
business, then be prepared to change and be flexible. Sometimes the original
idea needs some fine-tuning before it becomes commercially viable and profitable
for you. By all means stay with your dreams, vision and ideas, but be flexible
and allow yourself the luxury of discussing those ideas with professional
advisers, as well as those who have already done it before.
- Make sure you know your customers
Every business must have customers. If you don't have customers you won't
have sales. If you don't have sales, you won't have profits. If you don't
have profits you won't have a business. Make sure you are aware of your
customers as well as your competitors. You need to know your customer's
preferences, as to the services you can provide. Unless you know your customers
well, it is difficult for you to know what to supply.
You need to know what their requirements are. You need to find a bit
more about their buying patterns and you need to be aware of your competitors
so they don't take your customers away from you. Also provide good customer
service. The short answer to customers is, work hard to get them and
when you've got them, keep them by providing quality products, service
and good support so they won't consider going anywhere else.
- Watch your cash
Ensure your cash position at all times allows you to make decisions and pay
for the requirements of the business. The saying that "cash is king" still
holds true today because if you run out of cash your business will come
to a "screaming halt". You always need to maintain sufficient cash in reserve
to meet emergencies and to pay staff and to pay for goods and services.
This means that the fact you have a lot of stock in the warehouse
or a lot of equipment or other assets, does not guarantee you will
not fail. If you don't have cash you will definitely fail because
most people don't' look kindly on being paid for their goods and
services with your stock or plant or equipment. People want cash.
- Work with good staff
Make sure you employ good people. Motivate and train them so they are happy
in their work. The result will be increased productivity and work satisfaction.
Be patient and persistent, and insist on a high standard of work from your
staff. Motivate, encourage and coach if necessary, as well as pat them
on the back when that's needed. Some psychologists go so far as to recommend
that the staff need a cuddle now and then, but that is probably going a
bit overboard!
Make sure you have good morale in your workplace, because that will
result in high productivity and high profits for the business. If the
business is doing well, ensure that the staff know about it and praise
them for it. The best confirmation of your satisfaction with your staff
will be when you share some of that increased profit with them by way
of bonuses and other benefits.
- Always seek advice
Listen to good advice. The person who thinks they know everything is headed
for disaster. Being a lone ranger does not entitle you to a medal and you
will find most people are prepared to talk and help you if you ask. Also
be aware of the fact that you cannot do everything yourself, based on the
knowledge you have. Others also have expertise and something that takes
them five minutes to explain could take you a couple of days to figure
out on your own.
- Be realistic
If you are in business, you need to live in the real world. You need to watch
your business performance. Control your expenses. Look at ways of increasing
your income. Continually monitor how the business is going and how the
staff are performing. Have a reserve of cash in the bank for a rainy day
and plan ahead all the time, rather than waiting for disaster to happen.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow ( http://www.startrungrow.com )
is a global online information organization that specializes in creating,
developing and marketing business help information specifically with
the aim of "making business easier" for entrepreneurs around the world.
The StartRunGrow objective is to become a dominant player in the business
help arena providing end to end solutions for the millions of small and
medium businesses worldwide who continue to struggle daily with the difficulties
of starting, running and growing a successful business.
Article Source: http://EzineArticles.com/
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