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Small business owners mistakes

hansh
(@hansh)
Eminent Member Registered

Small business owners mistakes

As a small business owner, what is the one thing that you would do over if you had a chance to?

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Topic starter Posted : 05/03/2010 2:46 am
nick25
(@nick25)
Eminent Member Registered

Re: Small business owners mistakes

Mostly small business owners do the fololwing mistakes:

1. "Career freedom means starting a business."
Clients often assume they can reach career freedom only by starting a business. I know dozens of people who feel very free in a corporate setting. They swim easily in the corporate stream and learn to balance their lives. Some even return after successful entrepreneurial ventures.

2. "Don't worry, be happy."
Some advisors tell you, "You'll be great," even if they secretly believe you're following a harebrained path that is doomed to fail. Do your own research and get second and third opinions.

3. "Visualize success."
While I support visualizing and attracting, I do not believe you can attract business from a non-existent target market. Better to attract prosperity and fulfillment. You might also try to attract knowledge and discernment so you can evaluate your various advisors.

4. "If you can dream it, you can do it."
You can dream of meeting the Queen of England at your local Wal-Mart but you may have to wait awhile. The reverse is often true -- you must have a dream before you experience the reality -- but some people manage to skip the journey and enjoy the arrival.

I only urge to all that dont start any business before you have the proper knowledge about that.

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Posted : 17/03/2010 6:01 am
liber8life
(@liber8life)
Active Member Registered

Re: Small business owners mistakes

no ones perfect, everyone is capable of making mistakes especially in business..;)

on the other hand, we also learn through committing mistakes so that's okay. as long as we don't commit it twice and we learn from it. Especially in business, it's normal if someone commits mistake so long that he learns from it and do something to prevent it from happening again. 😀

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Posted : 17/03/2010 7:35 pm
cyril007
(@cyril007)
Active Member Registered

Re: Small business owners mistakes

Hello Friends,
By avoiding some common costly mistakes, you can significantly improve your chances of making your business a success.Small business owners may start out with high expectations, but according to the U.S. Small Business Administration, roughly 50 percent of them will fail within the first five years. Reasons for failure can be as varied as the risks involved in starting and managing any business. But there are some common mistakes that small business owners make that if avoided, can lead to the ultimate success and sustainability of their businesses.
1.Lack of planning. A great idea can be the inspiration for a small business, but the proper planning is what will get that venture off to a good start and keep it on track. As Steve Strauss, author of the "Small Business Bible," points out, being aware of potential business problems before they arise is one way to avoid them. Every small business needs a realistic and comprehensive business plan, based on accurate and objective information.
2.Borrowing too much.Initial high expectations can work against small business owners when they lead to borrowing too much. It may take some time to start generating profits; large monthly debt payments in the early stages can sap critical cash flow that would be better invested in marketing and developing the business.
3.Spending too much. While a small business owner needs to have the necessary facilities and resources, spending too much on equipment and furniture, hiring too many employees and renting too much space can place too heavy a load on a start-up business. As pointed out by Nolo, it's better to start on a shoestring. Then the business can be built up as it starts to generate profits and a positive cash flow.
4.Insufficient capital. While borrowing too much can sink a small business, insufficient capital can also derail even the best-laid plans. As indicated by Business Know-How, many small business owners underestimate how much money they will need and are forced to close before they have even had a chance to succeed. Small businesses can often take up to a year or more to really get going. It's vital to have enough working capital to survive that period.
Thanks.

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Posted : 18/03/2010 2:13 pm
chris27
(@chris27)
Trusted Member Registered

Re: Small business owners mistakes

Hello everyone,
You all have shared a very nice tips. keep sharing like this. I fee really honored to be the part of this forum.
Thanks & Regards
Chris

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Posted : 22/03/2010 3:16 am
gregbraddy
(@gregbraddy)
Eminent Member Registered

Re: Small business owners mistakes

1) Jump straight into a new business, dive in headfirst: Realistic and objective relationship with your own business starts when you start your company. Sometimes there is no time to analyze and think too much, unplanned opportunity shows, it is the right moment etc. But mostly you do have enough space to take a critical look at your venture before investing too much time or money. Think about things such as the weakest part of your plan, competition, chances on market, what would you do if this plan wouldn't work. These critical analysis will help you avoid some of the basic and very common mistakes. Believe it or not many of them could be skipped at the very beginning.

2) Underestimating how long it will take until the business starts to support itself and you: This simply means two things. First-you must be aware that each new business needs a lot of time to spread and start functioning-earning money, and you must count with that-being prepare to see no income for a first few months. Second-you must calculate how much exactly it is going to cost and what time period is necessary for your business to attract regular customers/clients. This is the most serious mistake and problem which make people bankrupt and give up.

3) Not knowing your customers: When you get an original idea of your business, your next thought should be the market and the customers. No matter what kind of products or services you provide, you must know in the first place what is your target group of people, who are your potential customers, what do they need, how can you help them, how can you reach them. And even when you already have a solid customer base, you must be careful about changes in fashion, finances, approach and everything that come with the times which are changing.

4) Spending or borrowing too much: Initial high expectations can work against small business owners when they lead to borrowing too much. When you take a credit or a loan from the bank, don't forget that you are the one who is going to return that money and your business won't start generating profit immediately. The larger the loan, the larger the monthly payment. When you do get the money for your new company, be careful what you are going to spend it on. Don't spend too much on equipment, furniture, hiring too many employees and renting a huge space. Go step by step.

5) Not being prepared for taxes: If this is your first small business to run, you must remember the taxes, as the regular monthly cost. People often make this serious mistake thinking only about invested money and profit it will bring. But you have to fulfill a couple of obligations to the state, you can't avoid them and these amounts are not low, especially if you let them accumulate. It's a good idea to have a separate bank account only for this purpose, put money into it from each payment you receive.

6) Lack of marketing and advertising plan: A marketing plan is a part of your initial small business plan. It creates the kind of attention you want to get in front of your customers. It is what attracts people to you and it is a story which stands behind your products or services. That story is what people like to buy. Especially if your business is fresh new, the marketing is the only way to let people now you are there. Having a website, a good website is a good way to promote your business and make it visible.

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Posted : 22/03/2010 9:02 am
Markwilson
(@Markwilson)
Eminent Member Registered

Re: Small business owners mistakes

1. Lack of Market Research

When a budding entrepreneur comes up with an idea for a new business he assumes that because he would buy such a product or service then everyone else will. This may be the case for day-to-day necessities but for other items this is usually not so.

It's important that when you start up you carefully research the market to check that:

1.

There is demand at a level which would lead to a sustainable business
2.

People are prepared to pay the price required for you to make a decent profit

Undertaking market research may appear time consuming but the effort will pay off.

2. Poor Record Keeping

Some business people are not born administrators; they feel more comfortable getting out there and 'doing the business'. Paperwork is too easy to ignore but can never be put off indefinitely.

Sales, purchases and other expenditure must be carefully documented, so you know whether you are making a profit or not. Invoices must be issued on time and chased up promptly if there is a delay in payment. It's all very well having the sales but poor record keeping can hold you back.

Having your paperwork in order will also save you time when it comes to your accountant doing your year-end books!

3. Insufficient Capital

When starting off it's easy to decide what capital is required for fixtures and fittings, machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, i.e. cash to pay expenses before your customers pay you. This is known as your working capital requirement.

Small businesses can fail because they have insufficient cash to start off to meet these immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.

4. Ineffective Marketing Or None At All

You cannot afford to treat the cost of marketing as an unnecessary expense. A business with no marketing is like waving in the dark - you know you are doing it but no one else does!

There are many ways to promote your business on a small budget; it's just a case of being inventive and creative. What ever you do, don't assume that people will quickly know you are in business - they won't, unless you tell them.

Ign 5. Ingoring Changes In The Market Place

As a small business owner it's very easy to get immersed in your business and not see what is happening around you in the market place. Always keep your eyes and ears open to what the competition is doing and what your customers want. Don't get left behind.

6. 6. Owner's Attitude

Attitude is everything in business. Don't forget that the real boss in your business is the customer. Running a business may make you feel important but don't let this develop into an "I am better than you" attitude. Do this and you will quickly chase your customers away.

7. 7. Spending On The Wrong Things

Being in business can be exciting, especially as the cash starts to roll in! However, don't be tempted to spend it on a new car, a house or just a good time. If you are to own a successful business then you have to keep some cash back to fund future growth. A business cannot grow without cash, so commit to spending business money on the business.

8. 8. Dependent On A Small Number Of Customers

Don't fall into the trap of setting up a business just because one person says they will buy from you every week or month. Setting up and running a business, which is dependent on one customer, is not a recipe for success. What happens if, one month after you have spent all your cash to set up your business, that customer says he has changed his mind and has decided to buy elsewhere? Unless you can find other customers very quickly you are faced with closure.

Before embarking on a new venture make sure you have a sufficient number of customers such that if a few go elsewhere you can still continue trading.

9. 9. Growing Too Quickly

Surprisingly, growing too quickly can be a problem. You have to be disciplined enough to only take on work you can handle. If you are tempted to accept too much you could end up disappointing not only the new client but also your existing ones.

Also, don't under-estimate the impact rapid growth can have your administrative burden. As I mentioned earlier, getting behind on the paperwork can have an equally damaging effect on your business.

10. 10. Trying To Do Everything

Finally, the problem most small business owners have is the fact that everything falls on their plate. Inevitably this is how it's likely to be in the beginning, when the limited budget means that staff are a luxury, but as the business grows be aware that you cannot continue to do all tasks. There will come a point when you become inefficient and not have enough time to complete everything in sufficient detail. Taking on an extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best - getting the business in.

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Posted : 27/03/2010 1:10 pm
rapidbilling
(@rapidbilling)
Trusted Member Registered

Re: Small business owners mistakes

Hi,

# Underestimating Your Project or Service Time
# Incorrect Pricing.
# Not Charging for All of Your Time and Cost
# Not Receiving Timely Payments
# No Business Systems or Procedures.
# Buying Advertising "Just Because"
# Spreading Yourself Too Thin
# Not Getting Help Soon Enough

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Posted : 30/03/2010 6:01 am
saramedows
(@saramedows)
Active Member Registered

Re: Small business owners mistakes

Following will leads to success of small owners, if they were not made any mistake

- Focus on quality not quantity
- Time Management
- Timely deliver the orders
- Sincerity
- Good remuneration to their employees

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Posted : 30/03/2010 1:46 pm
edwin34
(@edwin34)
Trusted Member Registered

Re: Small business owners mistakes

Hi

Here are two more tips....

Ignoring the employees is a mistake many entrepreneurs make. You might be the key to everything but you cannot do everything. That is why you hire the people to work for you. And with you. Right staff is very, very important. By "right" I mean people who knows their job, and do it well. And for that you have to make them feel useful, important and respected. If you share your ideas, success and money with them, you will get the positive feedback, and that will have a positive impact on your company.

Giving Up: As we have already said building a business isn't an instant product. It is a very reason many companies shut down so soon. But, if you have a control over your finances and realistic business plan you should never give up when you come across the first obstacles. All the good and important things require certain period of time, and having in mind all the challenges of running a business brings, it's normal that the beginning is hard and not each period of the year is equally successful. If you're not starting than keep in mind all the bad moments you used to face with and how did you face with them. Some of the most successful entrepreneurs failed a few times before doing extremely well.

Thanks

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Posted : 31/03/2010 10:21 am
carl12
(@carl12)
Eminent Member Registered

Re: Small business owners mistakes

Trying To Do Everything

Finally, the problem most small business owners have is the fact that everything falls on their plate. Inevitably this is how it's likely to be in the beginning, when the limited budget means that staff are a luxury, but as the business grows be aware that you cannot continue to do all tasks. There will come a point when you become inefficient and not have enough time to complete everything in sufficient detail. Taking on an extra pair of hands will increase your costs but you will be surprised at how much time will be saved, allowing you to do what you do best - getting the business in.

Brampton Real estate agent

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Posted : 01/04/2010 8:18 am
saria19
(@saria19)
Active Member Registered

Re: Small business owners mistakes

1)Insufficient Capital:When starting off it's easy to decide what capital is required for fixtures and fittings, machinery and stock. What many new business owners forget about is the cash needed to fund day-to-day requirements, i.e. cash to pay expenses before your customers pay you. This is known as your working capital requirement.Small businesses can fail because they have insufficient cash to start off to meet these immediate expenses. If you wish to survive make sure you set aside enough cash to meet all your needs for the first few months.
2)Ineffective Marketing Or None At All:You cannot afford to treat the cost of marketing as an unnecessary expense. A business with no marketing is like waving in the dark - you know you are doing it but no one else does!There are many ways to promote your business on a small budget; it's just a case of being inventive and creative. What ever you do, don't assume that people will quickly know you are in business - they won't, unless you tell them.

Have a nice day

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Posted : 06/04/2010 6:17 am
sophie17
(@sophie17)
Eminent Member Registered

Re: Small business owners mistakes

THEY CONCENTRATE EXCLUSIVELY ON SALES
When first starting out or having a background in marketing, many business owners and self-employed individuals see only one line on their profit-and-loss statement: SALES!
They think the more sales they have, the bigger and better their business will be.
Nothing could be further from the truth!
While no one can deny the benefits of having a boatload of business, focusing exclusively on sales is oftentimes a recipe for disaster. A "more sales only" mentality and growing too quickly are classic examples of how a business can fail during its peak growth phase.
Believe me, it happens.
Running and operating a successful business doesn't require exceptional talent, but it does require vital and basic business skills covering a wide range of areas.
To succeed in business you must focus on your WHOLE business, not just parts of it.

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Posted : 08/04/2010 4:26 am
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