Doing business is not the cup of tea of everyone as one has to strain every nerve in making it a success. No doubt, you have poured your heart and soul into your business, but sometimes, due to tremendous work pressure, you may commit some common gaffes that along with impacting your finances also affect your goodwill in the market. Just some inside knowledge and a little meticulousness will make the things easy for you. Let’s have a look at some of the mistakes that owners commit while managing their business.
- 1. Unrealistic Expectations from Employees: Of course, you are passionate about your business and would like every employee to be like you. But, remember one thing that every employee has his/her own style of doing work, and your impractical expectations might suppress their creativity. If you will keep an eye on them every time and criticize them for everything they do, they will botch-up. Give your employees the liberty to work independently, have a trust on them, and be open to their ideas. They will certainly perform beyond your imaginations and will take your business to the new heights.
- 2. Unseemly Preparations for the Tax Day: As the month of April rolls around, it takes the sleep away from the eyes of those businessmen, who don’t prepare for the tax day. If you don’t execute your tax strategies on time, you will end up paying more tax. If you really want to save your money on taxes, then do not put it off until the last moment. Instead, be proactive and plan ahead of the tax year, not later than.
- 3. Business, Business….and Business All the Time!: Being a business owner, you have to shoulder manifold responsibilities, and of course, need to exert extra efforts to leave no stone unturned in keeping the flag of your business flying high. But, it no way means that you should completely discard your social and personal life. Healthy diet, proper rest and fun with family members and friends are equally important. If you keep yourself away from all these things and always remain lost in your business, it will directly or indirectly affect both- your professional life, as well as personal life.
- 4. Unfeasible Goals: Most of the business owners dream of becoming a billionaire just in one night and set such goals that, in reality, are unachievable. Setting unrealistic and vague goals impact your credibility among employees. So, always set SMART (Specific, Measurable, Accountable, Realistic, and Time bound) goals.
- 5. Underestimating the Competitors: Entrepreneurs, who are having a large customer base and earning huge profits, generally begin to underestimate their competitors. It should always be kept in mind that customers take no time in switching to your competitors’ products, if they find something creative or innovative in their products. Therefore, never take your competitors too lightly.
- 6. Focusing Exclusively on Sales Instead of Customer Service: Most of the business owners measure their success on the basis of the sales. For them, more sales mean more successful business, and so they pay more heed towards sales. But, the reality is something else! The way to expand your sales is to focus on excellent customer service. If you are serving your customers whole-heartedly, you’re sowing money seeds, which will yield you immense profits in the long run.
- 7. Failing to Take Sound Business Decisions: Many a times, it happens that owners need to take some sound decisions for the sake of growth of their business. The biggest blunder, which entrepreneurs make, is that they let their emotions in the way of their decisions. The result is that they end up with huge financial loses. Be emotionally stable if you want to get enormous success in your business.
- 8. Incorrect Pricing Policies: Most of the new comer entrepreneurs keep the prices of their products low in order to pull the customers. By doing so, they fail not only to attract customers, but also to recover their operating costs. Generally, customers deem low-priced products as low quality products. So, while deciding price of your product, keep in mind the hidden costs (overhead cost, material cost, etc.) incurred on manufacturing it, and what your competitors are charging.
- 9. Dependence on a Small Group of Customers: Many business owners choose hassle-free way of expanding their business, i.e., relying just on a small group of customers. Well, this seems to be tempting at first, but in the long run, impinges on your cash-flows. So, you should always try to expand your customer base.
- 10. Not Planning Ahead: Future is always uncertain. You are at the peak today, but, the situation may reverse tomorrow. So, be prepared to mitigate all sorts of unseen circumstances. It’s true that business is all about taking risks. However, these risks can be minimized to a great extent by implementing appropriate plans.
Learn a fact that business can’t be run just by hard work, you also need to be a little bit smart so as to avoid hefty and costly mistakes while simultaneously doing the right things. So, think different….think out of the box!