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.