Many businesses, whether they are new or been established for a number of years, are committing mistakes that can easily be avoided. Sometimes we are so used to getting the job done that we don’t stop to realise that some aspects need to be evaluated.
One of the top mistakes is not having a niche. So many of us think that if we are ‘all things to all people’ or if we say “yes” to anything our customers ask of us, that we will create more wealth. After all, the wider our target, surely the larger our profit, right? Wrong. It’s been said that if everyone can use your product, no one will. You need to find a niche and focus on doing that one thing exceptionally well. Become a specialist and stay focused.
Another common mistake is expecting a short term gain. The first few months (and sometimes years) can bring pressure to earn money, which in turn can make you come across as desperate (“I really need this sale!”). But your focus should be on building long term relationships with your customers which will sustain your business in the long term.
And finally, many business owners are guilty of not knowing their numbers. You must keep regular tabs on profit, know your costs, how much money it costs you to run your business each month and so on. You also need to generate regular reports on your numbers, so that you can make sensible and realistic decisions about the next steps for your business. This is not to say that you shouldn’t take some risks, but these should be calculated risks based on research of your own financial situation.
Michelle Grice writes a weekly column for business women in The Western Weekender