Business Advise
Entrepreneurs - 7 Business Mistakes You Must Avoid
By Peter Viliamu
Many mistakes can be made in business and if you are able to avoid some of
them by reading and taking note of these warnings, then the time taken to
put these together will be worth while. Here are some business mistakes that
are common to many entrepreneurs..
No plan
Many people go into business without any plan at all. The old saying that
"if you don't have a plan you won't know when you've got there" still holds
true today. You need to set up a business plan and that plan will contain
other subsidiary plans such as a marketing plan, a finance plan, a sales
plan, etc.
Be flexible
If you have a business idea and you are looking at developing that into your
business, then be prepared to change and be flexible. Sometimes the original
idea needs some fine-tuning before it becomes commercially viable and
profitable for you. By all means stay with your dreams, vision and ideas,
but be flexible and allow yourself the luxury of discussing those ideas with
professional advisers, as well as those who have already done it before.
Make sure you know your customers
Every business must have customers. If you don't have customers you won't
have sales. If you don't have sales, you won't have profits. If you don't
have profits you won't have a business. Make sure you are aware of your
customers as well as your competitors. You need to know your customer's
preferences, as to the services you can provide. Unless you know your
customers well, it is difficult for you to know what to supply.
You need to know what their requirements are. You need to find a bit more
about their buying patterns and you need to be aware of your competitors so
they don't take your customers away from you. Also provide good customer
service. The short answer to customers is, work hard to get them and when
you've got them, keep them by providing quality products, service and good
support so they won't consider going anywhere else.
Watch your cash
Ensure your cash position at all times allows you to make decisions and pay
for the requirements of the business. The saying that "cash is king" still
holds true today because if you run out of cash your business will come to a
"screaming halt". You always need to maintain sufficient cash in reserve to
meet emergencies and to pay staff and to pay for goods and services.
This means that the fact you have a lot of stock in the warehouse or a lot
of equipment or other assets, does not guarantee you will not fail. If you
don't have cash you will definitely fail because most people don't' look
kindly on being paid for their goods and services with your stock or plant
or equipment. People want cash.
Work with good staff
Make sure you employ good people. Motivate and train them so they are happy
in their work. The result will be increased productivity and work
satisfaction. Be patient and persistent, and insist on a high standard of
work from your staff. Motivate, encourage and coach if necessary, as well as
pat them on the back when that's needed. Some psychologists go so far as to
recommend that the staff need a cuddle now and then, but that is probably
going a bit overboard!
Make sure you have good morale in your workplace, because that will result
in high productivity and high profits for the business. If the business is
doing well, ensure that the staff know about it and praise them for it. The
best confirmation of your satisfaction with your staff will be when you
share some of that increased profit with them by way of bonuses and other
benefits.
Always seek advice
Listen to good advice. The person who thinks they know everything is headed
for disaster. Being a lone ranger does not entitle you to a medal and you
will find most people are prepared to talk and help you if you ask. Also be
aware of the fact that you cannot do everything yourself, based on the
knowledge you have. Others also have expertise and something that takes them
five minutes to explain could take you a couple of days to figure out on
your own.
Be realistic
If you are in business, you need to live in the real world. You need to
watch your business performance. Control your expenses. Look at ways of
increasing your income. Continually monitor how the business is going and
how the staff are performing. Have a reserve of cash in the bank for a rainy
day and plan ahead all the time, rather than waiting for disaster to happen.
Copyright 2005 StartRunGrow
http://www.startrungrow.com
StartRunGrow (http://www.startrungrow.com) is a global online information
organization that specializes in creating, developing and marketing business
help information specifically with the aim of "making business easier" for
entrepreneurs around the world. The StartRunGrow objective is to become a
dominant player in the business help arena providing end to end solutions
for the millions of small and medium businesses worldwide who continue to
struggle daily with the difficulties of starting, running and growing a
successful business.
Article Source: http://EzineArticles.com/ |
|
