In my years working with many small business owners, I’ve come to realize that there are a lot of mistakes that can push businesses off course and cause them to go bankrupt. (I’ve made some of those mistakes myself.) Now, from the very beginning I give this list to my clients. Too bad they stick that list into their daily schedule and hang it on the wall next to the computer. I suggest you do the same to avoid making mistakes and increase your chances of success by 1000%.
1. Motivation to start a business, just because you know how to do something (designing jewelry, making better pate …)
Just because you know how to do something well doesn’t mean you know how to run a business, the two are not the same thing. If you follow that logic, there are millions of Martha Stevvard (owner of Martha Stevvart Living Omnimedia (MSLO), worth more than $600 million) and Marie Callenders (owner of a chain of famous restaurants and bakeries. )! You need to learn how to run a business in many ways, before you put your time, capital, and resources into action.
2. Start a business without a business plan, a blueprint for life and company
I never said you don’t need a business plan, what I’m saying is that you need a blueprint for your life and business career, to achieve success in small business and have happy life. If you are in need of capital, especially from the Small Business Administration, you need a business plan.
3. Start a business without a vision
You must see that your business is still alive, before you take out a loan, rent a store, or print business cards. You only start when you have clearly defined your business. It is almost a guiding torch, when you are on the road to building a business. Vision and imagination are two must-have skills for any business owner.
You must also provide a plan and direction for when you leave the business. Everyone wants a break at some point. You need to plan for a smooth exit, so that the business gives you an income or will be a reserve to invest in your next business.
4. Work longer and harder to overcome business challenges
Entrepreneurship is a challenge when you’re just starting out and when things get tough, people will advise you to work harder. However, that will only make things worse. When I was learning to play golf, I tried to gain as much momentum as I could to hit the ball far away. But I quickly learned that too much momentum won’t hit the ball very far on the taxiway. I need to relax to play better. The same is true in business. When my clients are frustrated and in crisis, I “arrange” them time to rest. It can be a struggle, especially when a client is in crisis because business isn’t going well. Oddly enough, however, by looking at problems new and open, you can increase the efficiency and effort of running your business.
5. Mistakes when hiring employees like you
When creating a detailed business plan, you will be concerned with the key activities required to run a business. One of them is needing people with different abilities and skills than you. If you hire employees with similar personalities and abilities, you won’t be able to create a strong business. For example, if you have a lot of ideas and a broad perspective, you will do yourself a disservice if you hire an accountant with a similar personality to you. A good accountant should have the opposite characteristic: They must be very focused and meticulous. Hire employees with the right competencies as your company’s core activity. To pinpoint an employee’s strengths and weaknesses, use personality and skills tests before you hire. You should also read Now, Discover Your Strengths to learn more about building good teams and individuals whose strengths can complement each other.
6. Cooperate with unnecessary partners
Sometimes, out of fear of working alone, or due to lack of capital, small business owners collaborate with unnecessary partners. In business, a partnership can be stronger than a marriage, and taking a partner out of a business can be worse than a divorce. The biggest problem here is to be clear, whether your partners have the same business vision or they have their own opinions. Most businesses require a consistent strategic vision; otherwise, the situation will be like there are two drivers in a car, no one refuses to leave and there are many scrambling to find out who is the driver. Before deciding to cooperate, consider whether you can rent or trade services with them. You’ll probably feel more comfortable in the long run. When you cooperate, make sure that the terms related to the partner and the work have been selected and recorded in writing before signing the agreement.
Think of it as the “Marriage Certificate” of your business career.
7. Control everything
If you feel the need to be in the business all the time, to take the lead, you will put yourself in a crisis and you will end up going wrong in business as well as in your personal life. As small business author Michael Gerber taught me, if you’re at work all the time, you don’t own a business, you own a job. If you don’t develop business systems and delegate the work, you will never be a business owner. Chi is as simple as that.
Make sure you have systems in place to ensure both your company’s work and your personal life.
8. No customer classification
Bill Cosby once said, “I don’t know the key to success, but I know the key to failure and that is not segregation of customers.” You need to identify the type of service or product you want and then sell it to potential customers who will use your services. If you try to sell expensive products to the poor, you will fail.
Focus on the type of service or product you want to sell, and then determine where you need to go to find customers.
9. Try to overcome the weak points
All the studies have shown that if you focus on the weaknesses, you only increase the weaknesses. You need to focus on strengthening your special gifts. Don’t try to fix your weakness, delegate or control it easier while focusing on developing your strengths.
A lot of my clients try to identify or connect their disparate capabilities together. If you are, try to follow these guidelines: Write a letter or talk to close friends, colleagues or relatives and ask them what makes you different. If they come to you for one of your strengths, see what they will come back for.
10. Do not use the money (investment) of the business before you earn it
This is one big mistake out of – 22 mistakes. In the first years of the business, I made just enough money to keep the company running. Then my phone started ringing, but I couldn’t answer the phone and receive the customer at the same time. I know I need to hire a receptionist, but how can I do that, when I only make enough money to pay the bills? I asked myself, how would I respond when a customer had the same problem – and I hired a receptionist. Initially I had to pay her salary with my credit card, but after a year, I made a lot of money. That amount is enough to pay the employee and give me a decent salary. Sometimes you need to spend, or as I like to call it, invest, invest money in necessities that have a positive effect on your returns.
11. Promote employees who are not suitable
This is one of the biggest mistakes business owners make. Just because you may have employees who can do the job, that doesn’t mean they’ll be promoted to supervisor or manager positions if they don’t have the ability to manage. Remember that most good athletes very rarely make good coaches. A good manager is completely different and has abilities no one else has.
Make sure the person you hire as a manager is someone who knows how to manage.
12. Grow a company without a business system
A good system is the foundation of your business. When running your business is difficult, 99% of the problems are solved by having a good business system. Figuring out the business system is difficult for small business owners. However, setting up business systems is as simple as writing down what you think about how it works.
You must determine what you need to focus on to set up a good business system for your business.
13. Try to do everything yourself
One of your biggest mistakes is believing that you can do everything yourself. As mentioned in Section 10, the higher your business aspirations, the better the people you work with must be.
Identify and assemble the internal and external teams you need to create “Small Business – Big Success”.
14. Too optimistic at the beginning
Avoid over-optimism when you are profitable in the early days and big profits in the first year of business. One of the main reasons why small business owners fail is lack of control over money. Being overly optimistic will keep you from seeing what will truly lead you to success. Build your business on the ground of reality, by providing accurate funding within the first three years of operation.
15. Buy the best quality equipment and hire more staff than you need
You should rent or purchase the necessary equipment for your business to operate efficiently and effectively. That doesn’t mean you have to buy the most expensive gadgets – just that you need to create products and services that keep customers. Start by setting a budget for your small business’ projected expenses. Also, you don’t have to invest in many people, but invest in the best people you can find. In Spanish there is a saying: Lo barato sale caro, which means: you get what you give. You would rather pay a good bookkeeper or accountant, than hire both a bookkeeper and a less qualified accountant at the same time.
16. Start a business without passion and focus only on profit/greed based ideas
You will never achieve success if you don’t care about your passion. I started to get nervous as soon as someone asked me: what business makes the biggest money. To be successful in business you need a long time and that requires passion. There is a wonderful book written a few years ago called Do What You Love, The Money WillFoìlow (Do What You Love, The Money Will Come), which has some of the best advice you can get. can learn.
17. Giving up too soon
All great inspirational stories are about people who follow their dreams and don’t give up until their dreams come true. Their stories are compelling, as they have to overcome seemingly insurmountable obstacles. They may have to give up and may come up with the best reasons to give up on pursuing their dreams. But what turned them from ordinary people to heroes was their courage and determination to face challenges. That is why you should start a business based on the areas you are passionate about.
18. Look for someone to tell you what you want to hear, instead of telling the truth
Do you remember American Idol syndrome? Don’t ask your mother or the staff how you did. I believe you will rarely receive constructive feedback. There are very few Simon Cowells in real life. If you really want to grow your business, you need the help of an outside advisor.
19. Not investing money in yourself or proper advice
Successful people always have a group of mentors or mentors with them. That’s one of the reasons they succeed faster than others. You should have such a team when you need to recruit the best people to help you provide useful advice on many different aspects of your business. You must also improve yourself as much as you can, by investing in yourself and in adding to your current knowledge. Courses, books, and mentors can help you improve your skills and knowledge so you can improve your business.
20. Not giving the employee a vision
All small business owners are leaders, and in that position they have to show their employees a brighter future. No one works for a leader who doesn’t know what they’re going to do next. No one works for a leader who has no faith in the future. To lead your employees (and sometimes customers), you need to envision a vivid future that your employees can see and feel where they are.
Notice: “Your Vision – The Origin of Leadership”.
21. Give employees more responsibility than they can afford and authority
The biggest complaint from small business owners, is that they can’t find the right person for the job. But sometimes they hire a really capable employee and quickly delegate a lot of tasks to them, ultimately turning that employee into an incompetent person. You’ll probably never find enough key employees, but if you want to avoid giving your top performers a job crunch, read Section 9 again.
22. Not having an exit strategy (or bad plan)
If you follow the instructions in this article, you will go from self-employment to being a self-employed entrepreneur and running a small business. However, remember, the purpose of a business is to give you a better life. Business is fair and can be of great value. A smart business owner will write a plan in advance in case they have to leave the company. In that case, which would you choose: Would you sell the company or pass it on to a family member, or to one of your good employees?
Smart business owners will think about this right from the start of the business.
Small Business, Big Life – Louis Barajas