8 Small Business Mistakes You Should Greatly Avoid

The more your business becomes successful, the more serious you take life daily that you sometimes forget to look at all your moves in a different detached perspective. You are sometimes unaware that you have committed the great common business mistakes that are every crucial in all your business moves. Of course, you surely could have avoided it if you only knew it. However, do not worry about it as this guide is here for you to stop any further pain in managing your business towards sweet success.

Here are the 8 hidden but terrible mistakes every small business owner should avoid.

1. Improper Project Estimates

Service providers as well as those people selling solid products critically encounter this factor. This is all about estimating your time and effort for the whole duration of the project. The greatest mistake small business owners usually commit is to underestimate the actual time for the project. This will eventually lead you to destruction and bankruptcy if not address earlier.

Stop this hidden mistake now, no matter how tempting it is to close a deal faster. Start recording normal project times and set real-time estimates based on these records for your next clients. Remember to add the variables that each of these projects need for a more reasonable service.

2. Incorrect Pricing

Some small business owners usually set confusing and inconsistent prices. This sometimes happens when they found competitor’s prices as either higher or lower than their original list. You can base your prices from an existing competitor’s price as start-up guide but do not stick to it forever.

You may have the same business but not exactly the same procedures and plans at hand. You have to set a fair price based on different factors that your business currently holds.

3. Not Charging Quality Time and Effort

It is not bad to put some extra care on the services or products you are working for clients. What irritates here is the fact that you seem to ignore the special quality of your product or service and the money and effort you put into it.

You would say that this is how you conquer competition. Yet, you are investing more money and creative time and effort for a higher quality. Are you just waiting for your downfall and let competitors laugh at your face?

4. Getting Slow on Payments

This relates to the old familiar cash flow problem. There are three major ways to get you out of this mistake.

– Start billing your customers at the earliest possible time. Get ready with your invoices according to your company procedures and system

– Try paying your employees or contractors for at least once a month. Talk to them about payment mode even before they are hired to avoid conflicts.

– If possible, get a credit card for your company. An accessible credit line is a good choice if you will have to deal with clients who normally pay within 60 to 90 days.

5. No Organized Solid System and Business Procedures

This mistake pertains to the general administrative procedures that need to be established in the first place. Things such as the hiring process, human resource development, job descriptions and responsibilities, collections, billing, employee benefits, vacations and payroll terms should give your business a solid structure that will define greater company identity.

If you are running your small business alone, set a well-defined systematic procedure that will make everything organized as your business grows. This will save you a lot of headache by the time your business expands and calls for more employees and subcontractors. Be ready for any positive change without facing much chaos.

6. Advertising for Nothing

Marketing involves advertising but most business owners do it without tracking results. If you are paying for advertising your business without tracking results regularly, then you are just doing just to tell others that you advertise. You are just wasting money in the process. Make advertising beneficial tracking and analyzing results for more success.

7. Wearing Multiple Hats at a Time

This brings a lot of stress and multitasking issues that could lead to burnout. Know your strengths and weaknesses in terms of the business skills you are dealing with. Do not overwork or take all roles all the time. Do the things that you really love doing here and leave those tasks you somewhat hate to freelancers.

8. The Old Outsourcing Problem

Outsourcing or delegating tasks to some smarter freelancers is not a waste of money. Just think of how much money you could have actually earned by now if you only focus on running your business and marketing it for continued success rather than doing all the tasks for a slower progress.

Check yourself and your business about these crucial business mistakes you may have unconsciously committed along the way. You may seek professional advice from consultants, accountants or even corporate lawyers to help you succeed further.

Are You Committing These Business Mistakes?

You have decided to take your business online. But are you doing what your website needs to help people see your website online. Your website needs certain things for your visitors and for search engines. Search engines help visitors find your website.

Do your visitors know what to do?

Most business websites design a website and then forget one important feature on the site. Your potential clients and customers, the visitors of your website need to know what to do on your website. They need a call to action. They need to be told what you want them to do.

What do search engines think of your website?

Search engines do not like it when your website had a lot of coding. Coding is what your website needs to put it online. While your visitors just see the website, search engines see the coding and a text that you have for your visitors. If the coding hides the website, the search engines will not rate your website well.

Are you using keywords?

Keywords are terms related to your business. You want your website to rank well for terms related to your business. When you use the terms related to your business on your website, the search engines rate you better. By search engines rating you better, you are higher on the search engine rating.

How are you collecting leads?

Visitors to your website are interested in your business. Many websites offer a gift related to the business to their visitors. For people to get the gift they have to give their email address and information. You explain that not only do they get the free gift, they also sign up to your newsletter. You now have permission to email them regularly, you can also email them when you have sales and specials.

What are the benefits of your business?

This is a big business mistake made. Businesses like to talk about features, but clients and customers want to know about the benefits you offer, not features. Your paint has additives that make it last longer, this is a feature. A benefit is that you will not have to paint again for 10 years.

Is it time for a change?

If you just got started online, then this is just a matter of getting started right. If you have a website, it is time to change these business mistakes. When you use these things on your website your business and site are going to be noticed, which of course means more business and income for you.

How To Make Your Marketing Strategy Work

1). Make the purpose clear
37Signals has made the art of simple in software, simple in pricing, simple in use, simple in hiring and the clear purpose the business exists. Take this extract from their stated values “Useful is forever – Bells and whistles wear off, but usefulness never does. We build useful software that does just what you need and nothing you don’t.”

2). Define the Marketing strategy, Work with it and don’t just state it
The first step in bringing your strategy to work is to figure out what it really means to you. Many people would look at 37Signals software maker and discover that their marketing strategy is to develop functional software with low cost and deliver in several versions with a 30-day free trial. A quicker check would show their actual marketing strategy is simplicity in everything.

3). Turn it into a mantra question
So, if you’ve developed a marketing strategy and now realize you can bring it to life by way of a defining characteristic, you might be wondering how to drive it deeper into the organization.

The only way for your real business strategy to flourish is to make it an integral aspect of everything you do. The simplest way to do this is to use it as the leading question for every service, product, staff, customer, marketing decision and process. The questions you must ask are: Does this product inspire? Does this decision keep fun alive? Is this process simple? Does this new hire value community? Is this pricing convenient?

4). Produce strategy scorecards
In addition to creating the key word question, teaching how to think with strategy and using strategy filters for decision making, you have to find ways to keep real strategy working in day to day activities of your business.

One of the best ways to do this is to turn strategy thinking into a game. Create scorecards that reward people for thinking, employing and acting with marketing strategy. If, in the case of a company where entertainment and surprise are the major characteristics of market strategy, bonus points could be awarded for taking action that exceeded a customer’s expectations, or for chairing a meeting that was both fun and productive.

5). Build strategy filters
In order for your marketing strategy to reach full potential, it must be the filter your entire staff uses for their work with each other, advisers, suppliers and clients. It is good to build a process that staff members can use when planning a project or even action step. This simple process lets them to view anything they choose in the light of strategy impact and either change course or know for certain that they are taking real strategy action.

Lots of start-up tries to decide the perfect business strategy to use to market only to discover that the market does not require the model they are about to use. Any business plan for that matter, is little more than a guess and I believe that your best chance for getting that guess right is to build your business model.

This assumes the role a fully developed market actually should play in determining the direction of an organization. The fact is, most people, if they consider marketing strategy at all, stop at a core message, identity elements and perhaps a sales proposition and call it a strategy.

A marketing strategy is how you plan to use the resources available to you to build an ongoing case that your business, products and services are the obvious choice for a narrowly defined ideal customer. If you accept this expanded view of marketing strategy, then I would suggest you answer the following questions in an attempt to measure where your strategy stands today, and where it could go if you understood and integrated it fully as your business model.