Any business venture is battered with mishaps, missteps and mistakes. No matter how wise you are into running or owning a business , there will come a time that you will run into problems at some point. The key to success is to quickly know your mistakes, learn from those mistakes and prevent it from happening again. Most enterprise big or small, experience the same pitfalls. It is those business missteps that make the difference between owning and managing a successful and solid business or owning a mini black hole that can leave you in financial ruin for years.
Here are the biggest mistakes business owners when managing their businesses.
1. An unclear purpose. Every organization must know why the venture exists and what it is trying to achieve. Business owners must give ample time and attention in developing mission and vision. It doesn’t matter what type of business you have, be it a delivery service, industrial printing service, a restaurant or manufacturing; a business needs to understand its reason for its existence.
2. Trying to get rich quickly. In business an overnight success usually takes 10years up to 20 years to achieve. If you’re expecting to be rich in a short span of time, you will just be discouraged early on your projects and may give up your dreams quickly. Everything takes time, this includes success. With the right attitude, patience, perseverance and a little luck everything will fall into place. Give your business time to grow and mature. It’s just like taking care of your own child. You don’t want to rush things. With proper care and right management decisions, your business will become solid and grow as you expected.
3. Assuming that you don’t have any competition. Business is an ongoing battle to get to the top. There are always battles in the field of business. Even if you have the latest technology and a trend setting approach to business, don’t assume that you have no competition. Competition is not just direct competitors, it also includes all available alternatives in making your business known to customers. Not knowing what the customer wants is a very serious competitive threat to your enterprise. A false sense of leadership or victory can lead to downfall.
4. Weak leadership. The success of your enterprise is a result of your strong leadership. Being a strong leader does not mean you to become a dictator or an authoritarian but you should not also be too complacent and too friendly. There is still should be some professionalism when it comes to work and managing the business. A good leader sets the right course of the organization and inspires the team to be on top and gets to the next level of success.
5. Putting too much business into personal lives. Many business owners put their personal lives as a last priority so that they can focus more on their businesses and in time, both will suffer. You need to balance your personal life and business life. If these are achieved, the success in business and family will surely happen.
6. Setting unrealistic financial targets. Being a billionaire will be common in business if all business plans came into reality. Many owners create new ventures and planning unrealistic returns and most of them never get the business launched. Having unrealistic goals will not only put dirt on your credibility but it can also put an emotional drain on you. You have to set measurable, specific, realistic and accountable targets and goals to ensure the continued growth of the business.
7. No employee accountability. Organizations that fail to hold employee accountability and other job responsibilities are guilty of mismanaging valuable resources. Paying employees that does not render the proper service to the company is giving no value to the company. Make employees responsible and accountable for their projects or they can just look for some other jobs elsewhere.
8. Not anticipating the changes in the market. Business markets changes like the weather. It is very important to keep an eye on shifting trends in customer behavior, technology and customer preference. Knowing the changes are a good foundation in making effective marketing strategies that will appeal to customer and wear out the ever changing markets.
9. Cutting prices on products or services. When business is tough, most owners resort to differentiating on price of goods and services. Customers may interpret cutting prices as lowering your standards. People will pay good money if the products and services are of high quality.
10. Thinking that your business can do everything. The ultimate mistake entrepreneurs make is believing that they can do it everything by themselves. Yes, owners can almost do everything but some of it are poorly executed. As a business owner, it is your job to get the best talents and help them fulfill their potential to the fullest. Have yourself surrounded with people who are strong when your talents are weakest. Great business organizations are built on the foundation of enhancing streets and not be a jack of trades and master of everything.
The success of a business depends on avoiding inevitable pitfalls, never accepting no for an answer and unwavering ambition. A business owner has the responsibility of the business to new height without sacrificing some of the most important factors learned. He is the captain and the king that holds his little kingdom to greatness.
Reggie is a blogger who writes specifically for business owners, IT geek and people who are interested with technology and business. She finds barcode scanning technologies and pcm management to be interesting subjects to discuss in her blogs.