10 Biggest Mistakes Made by Small Business Owners

[MASTERMOWER]

Pretty much sums it up. Avoid these and you've saved several wasteful years in the beginning...thought I'd share.



10 Biggest Mistakes Made by Small Business Owners
By Dave Bui / June 11, 2012

Operating a small business is no walk in the park. Every action or inaction can push your business into bankruptcy. What are some of the biggest mistakes that small business owners make?

Here’s the list of the 10 biggest ones.

1. Get rich quick: Success takes time. Every business takes time to grow and generate profits. It is next to impossible to become rich overnight. Expecting instant success and getting discouraged early on or giving up the whole thing prematurely when this does not happen is a common mistake many new entrepreneurs make.

2. Underestimating competition: Failure to do adequate research and analysis of competition or underestimating competition is the second-most-common mistake most new business owners make. When your customers walk away without buying your product or service for no apparent reason, it is probably because your competitors’ products provide more value.

3. Ineffective leadership: The success of a small business depends on how effective its leader is. An effective leader must set a clear vision for the business, formulate strategies, communicate the plans to all and inspire his team to excel. But most small business owners don’t realize how good or bad the quality of their leadership is.

4. Work-life imbalance: Many new entrepreneurs, in their enthusiasm to make their business big, ignore their personal lives or put it on hold to focus exclusively on their businesses. Although during the initial days, a business does require the undivided attention of its owner, for a business to succeed in the long run, the owner has to balance his personal and professional lives.

5. Unrealistic financial goals: Many new entrepreneurs start business ventures with plans of generating huge, unrealistic returns. This is a major mistake committed by many entrepreneurs. Set goals based on reality.

6. Hiring the wrong people: Most small businesses make the mistake of hiring the wrong employees. Before hiring, check if the personal goals of the candidates are in line with your business’s objectives.

7. Price cutting: Small businesses often reduce prices to stay competitive. But cheaper prices do not necessarily attract more customers. In fact, customers would be willing to pay more if they perceive more value. Price cutting not only reduces profits but also may adversely affect customer perceptions of your product. So, price the product reasonably and make improvements in product quality or convenience.

8. Weak marketing strategy: Not all entrepreneurs are good at marketing their business. They may make more than a few errors in choosing the right marketing strategy. A small business venture must therefore have a clear-cut and well-defined marketing strategy.

9. Not owning up: Mistakes are bound to happen in setting up or running a business venture. But business owners may try to cover these up. But irrespective of how well mistakes are covered, these will come to light sooner or later. When it happens, the image of both the business as well as its owner is tarnished permanently.

10. Doing it alone: Most small business owners try to do everything themselves. This is a mistake most new entrepreneurs make. Because most humans have only one or two natural talents, by doing everything himself and not delegating, the entrepreneur is more likely to make mistakes.

http://www.saleschase.com/blog/2012/...siness-owners/

[clclawn]

Number 10 pretty much covers it but I would add; identify your own personal weaknesses quickly then work everyday to either fix them or get someone in to handle that.

The weaknesses of the owner are the weaknesses of the business and those weaknesses only amplify as the business grows. A successful business is one where the owner is able to admit they suck at something. Most failed or failing businesses I know fail because the owner is so full of themselves they think they are the best at and know everything.

[steve-o]

I'M A MAN OF MANY TALENTS clclawn.........

Number 10 pretty much covers it but I would add; identify your own personal weaknesses quickly then work everyday to either fix them or get someone in to handle that.

The weaknesses of the owner are the weaknesses of the business and those weaknesses only amplify as the business grows. A successful business is one where the owner is able to admit they suck at something. Most failed or failing businesses I know fail because the owner is so full of themselves they think they are the best at and know everything.

i'm also full of myself or is that full of something.........

steve-o

[clclawn]

sorry steve, i should have made an exception for you.

[steve-o]

I Accept Your Words Oh Great One.....

sorry steve, i should have made an exception for you.

:laughing::laughing::laughing:

steve-o

[Stephen M.]

#11. You Didn't Build It:

If that is the case, why did I spend countless sleepless trying to figure out how I was gonna pay for stuff when cash flow was tight?

If that is the case, how did I ever make payroll when cash flow was tight?

If that is the case, where was my government bailout?

Oh crud, I'm in the wrong Green Industry!! :laughing:

[steve-o]

I Done Heard That B/4..............

#11. You Didn't Build It:

If that is the case, why did I spend countless sleepless trying to figure out how I was gonna pay for stuff when cash flow was tight?

If that is the case, how did I ever make payroll when cash flow was tight?

If that is the case, where was my government bailout?

Oh crud, I'm in the wrong Green Industry!! :laughing:

why that be your next boss man president mr. stephen. he knows you ain't built sheot......

steve-o

[rockymountain]

Business

10 biggest mistakes;

1. Get rich quick: Success takes time. Every business takes time to grow and generate profits. It is next to impossible to become rich overnight. Expecting instant success and getting discouraged early on or giving up the whole thing prematurely when this does not happen is a common mistake many new entrepreneurs make.

2. Underestimating competition: Failure to do adequate research and analysis of competition or underestimating competition is the second-most-common mistake most new business owners make. When your customers walk away without buying your product or service for no apparent reason, it is probably because your competitors’ products provide more value.

3. Ineffective leadership: The success of a small business depends on how effective its leader is. An effective leader must set a clear vision for the business, formulate strategies, communicate the plans to all and inspire his team to excel. But most small business owners don’t realize how good or bad the quality of their leadership is.

4. Work-life imbalance: Many new entrepreneurs, in their enthusiasm to make their business big, ignore their personal lives or put it on hold to focus exclusively on their businesses. Although during the initial days, a business does require the undivided attention of its owner, for a business to succeed in the long run, the owner has to balance his personal and professional lives.

5. Unrealistic financial goals: Many new entrepreneurs start business ventures with plans of generating huge, unrealistic returns. This is a major mistake committed by many entrepreneurs. Set goals based on reality.

6. Hiring the wrong people: Most small businesses make the mistake of hiring the wrong employees. Before hiring, check if the personal goals of the candidates are in line with your business’s objectives.

7. Price cutting: Small businesses often reduce prices to stay competitive. But cheaper prices do not necessarily attract more customers. In fact, customers would be willing to pay more if they perceive more value. Price cutting not only reduces profits but also may adversely affect customer perceptions of your product. So, price the product reasonably and make improvements in product quality or convenience.

8. Weak marketing strategy: Not all entrepreneurs are good at marketing their business. They may make more than a few errors in choosing the right marketing strategy. A small business venture must therefore have a clear-cut and well-defined marketing strategy.

9. Not owning up: Mistakes are bound to happen in setting up or running a business venture. But business owners may try to cover these up. But irrespective of how well mistakes are covered, these will come to light sooner or later. When it happens, the image of both the business as well as its owner is tarnished permanently.

10. Doing it alone: Most small business owners try to do everything themselves. This is a mistake most new entrepreneurs make. Because most humans have only one or two natural talents, by doing everything himself and not delegating, the entrepreneur is more likely to make mistakes.