Do you have to try and eat a piece of a hot pepper in order to know it’s hot? No. Why not? Because somebody in the past already tried to gulp down an entire jalapeno pepper and it did not go so well. Therefore, others learned from that mistake and decided to use it in smaller amounts. The same principle of learning on the mistakes and experience of the other people has been around forever. It can also be implemented to small businesses. Here are the 5 mistakes that you need to avoid to stay afloat.
Introducing Every Single Novelty There Is
New technologies are important and you need to make sure that you are up to date. If your competition is using something, sooner or later, you will be forced to try it yourself. It will stop being a perk and it will turn into a standard. However, that does not mean that you need to accept just every single piece of equipment and software you are offered. Pick only the things that obviously facilitate or boost your work efficiency. Even then, purchase only if you are provided by a demo period. You can never tell if it really works until you try it first.
Expanding Too Soon
A good start and a financially successful period may get you thinking about expanding. However, it is not reasonable to expect that a business twice as big will bring profits twice as high, right away. Expanding is a big investment and it doesn’t mean that it has to go smoothly every time. Profits can be less than expected, so it can end up setting you back rather than improving your position.
Miscalculating Optimal Workload for Your Employees and Yourself
At times, you may feel that adding a little bit more on an employee’s plate will make them more efficient without putting in much more effort. However, that can add up very quickly up to the point where it hurts your business. Eventually, the quantity of the work will reflect poorly on its quality and there are no small businesses that can make compromise on their good service or products.
Not Developing a Proper Financial Plan
An effective financial plan is an essential factor of your business survival and success. You need to make it realistic and flexible. Many people find this quite challenging, so it is always advisable to hire a professional for this type of work. Once you have a plan, you need to stick to it. Being flexible about it is good, but even that flexibility needs to be within reasonable limits.
Letting Go on the Money Owed to You
Your business depends on your earnings. You invest time, money and work hours into your business, so if you do not have the money paid back to you, you will soon lose everything. Therefore, if there is one thing you need to think about – it is the way you deal with the payments. All your deals need to be written down and turned into solid contracts. In the worst case scenario, you will be able to hire an agency to deal with debt collection in your behalf.
A lot of businesses failed because of these mistakes. Some of them succeeded despite them. In both cases, it is best to be aware of them and learn from them.
About the Author
Dan Radak is a marketing professional with ten years of experience. He is a coauthor on several websites and regular contributor to BizzMark Blog. Currently, he is working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies.