Opening a small business comes with its own set challenges. While many people are aware of what it is they should be doing in order to achieve small business success, many do not know what it is they should not be doing.
Though many small business owners are doing everything they have been told to do, they are unaware that they are also doing things that are hindering their business’s growth, effectively stunting it, as everything they are doing wrong is negating everything they are doing right.
In order to give your small business its best chance at success, it is important to make sure you are unintentionally doing anything that might be hurting your business’s growth.
Here are 5 things that could be killing your small business:
1. Hiring Too Quickly
Many small businesses make the mistake of hiring too many employees too quickly. Many business founders tend to jump the gun too quickly in that once their business begins to grow, they hire more people than necessary, spending more money than their business is actually bringing in each quarter.
Instead, businesses should hire when it is absolutely necessary. One of the best ways to utilize employees effectively is to invest in the right type of software and business tools that can help your business run efficiently without overspending on employees. As a spa and salon owner, for example, look into spa software instead of looking to hire a receptionist. You will be saving money on your overhead costs while still offering customers the same customer service.
2. Borrowing Money Too Soon
While having cash flow is essential to a business’s success, borrowing money from lenders too soon can leave your business in the red within a few months. Businesses that borrow too much too soon tend to run out of money quicker than those that work on a small budget. Moreover, the more you borrow, the more interest you will have to pay back. And, the earlier you borrow, the more interest you will acquire.
3. Relying on Your Business Plan to Make Sales
Businesses do need business plans, for they not only structure the way a business anticipates it will run, it also is a necessary asset when dealing with loan officers and investors. However, a business plan will need to be adjusted as the business progresses. Assuming the plan will remain true and relevant a few months into the business can kill your business. Putting your plan into action will require changes, for once your business is up and running, you will begin to see areas in your plan that need to be amended.
4. Focusing Too Much on Image
Many small businesses fall into the trap of trying to keep up with the big players in the industry. Focusing too much on the business’s image can actually hurt your business, as you are spending unnecessary money trying to impress clients and potential investors. Instead, be transparent and focus more on the products and services your business provides. Businesses that try to impress their clients by having a fancy office and splurging on expensive business dinners can end up losing so much money they eventually have to fold. As a small business, it is okay to run like a small business. Focus on your profits, your revenues, and offering your clients the best service they can get, as this is what is truly important to establishing your business as a successful competitor.
5. Not Marketing Your Company Effectively
One of the biggest mistakes small business can make is not putting in enough effort into marketing their business. Regardless of your size and budget, there are always simple and cost-efficient ways to market your company. By not putting in the effort to get your business name out into the industry, you are effectively shutting your business doors before they even get a chance to fully open. Take time to market your business to your target audience. Use social media to your advantage. Use email marketing. Send out fliers. There are a myriad of ways you can market your business without blowing your budget.
By avoiding these 5 errors, you can give your business its best chance at being successful.