10 Common Mistakes of a Small Business Owner

Small business owners could easily fall into the trap of failure without the right knowledge and tools in launching such an enterprise. It’s important to develop an appetite for risk, a hunger for knowledge, and a drive to stay afloat despite strong headwinds. Here are some of the most common mistakes small business owners make, and how you can turn it around.

Not setting smart goals

Running a small business doesn’t mean you have to set aside setting goals. The mere fact that you’re a small business owner means the more you need to construct and achieve certain business goals. If you skip this, you’ll easily be gobbled up by your closest competitors.

There’s a certain acronym called S.M.A.R.T. – a commonly used method of setting goals. For a specific goal to be successful, it must follow these rules:

• • Specific
  • Measurable
  • Acceptable
  • Realistic
  • Time-bound

To put it simply, it means that your business goals must be attainable within your scope given your constraints on time, effort, and money. It is crucial for small business owners to have a clear grasp of where they want to go and what the needs of their customers which they want to serve.

No definite marketing strategy

If you do not have a clear view of your target market, you will not be able to market your product or service successfully. It has to be clear in your mind how a potential customer will hear of your small business and what you are offering.

In marketing a product, you need to be consistent in your presentation of the benefits that it can give to its users. Your target customers would get confused if your message is constantly changing. Be sure that your marketing strategy is consistent with the message for every new customer that will learn of your product or service.

Underpricing your product or service

In the pursuit of getting a bigger chunk of the market, many small business owners tend to underprice their products or services. They hope that consumers will patronize their small businesses because of their cheaper prices. But this will hurt your small business more than you think. Without value, your customers will think that your products or services are not worth the cost.

If you believe on the value and quality of your product, stand by its true price and never back down, even if its price is slightly higher than your biggest competitor. Conduct a thorough market research to arrive at the wisest pricing structure for your product or service before offering it to consumers.

Not following business regulations

Many small businesses have not reached their full potential because they fail to comply with government-mandated business practices. These include operating without proper documents, not paying the right tax, and much more.

If you’re after the growth of your small business, you need some patience and perseverance to make sure your small business follows current regulations. After all, you don’t want to have the government going after your business if you’re operating illegally.

Striving for big rewards early on

Growing a small business takes time. You need to accept the fact that it will take time before you are able to reap the rewards that you want. Be satisfied with the little morsels that trickle in your direction.

If you’re thinking that having a small business is a get-rich-quick scheme, you’re putting yourself in financial trouble. Accept the fact that there’s no “overnight success” in growing a business.

Being successful in your small enterprise means being patient and ready to take risks.

Afraid of using modern technology

We are living in a tech era where everything’s connected. Learn to embrace technology within your business and use it to your advantage.

People are increasingly relying on mobile devices to get information quickly anywhere, which is a prime target to boost awareness about your small business. As a matter of fact, social media is the most engaging and effective venue to promote your products.

Not being financially prudent

Many small businesses also didn’t reach their full potential because their owners were not wise in spending their initial profits. Don’t fall into the trap of spending for luxuries that you think you deserve because your small business is growing fast.

Reign in your desire to splurge until you are safely cruising over the waters. The smart business owners ideally do not spend their first earnings. They spend some of it yes, but on things that will expand their business, rather than for extravagance. In this regard, they also do not underspend in recapitalizing for their business.

Setting unrealistic financial goals

It’s perfectly fine to have big dreams. But since you’re still starting small, your goals should be in tune with your limited resources. You can only do so much with what you have on hand. Don’t try to strive for more than what you can handle, or you will just earn frustration in return.

Not being committed to succeed

Operating a small business is not for the faint-hearted. The only way for you to overcome setbacks with ease is if you’re committed to succeed. You need to give it all for your small business, just like caring for a small plant. Provide all the resources you have and you’ll see it grow in no time.

Being a “jack of all trades”

Small businesses typically have limited human resources – in most cases, it’s just you who’s doing everything.

Trying to do it all alone might be understandable at the early stages of your small business. But as your business grows with time, you need to let others help you to do the work that you just cannot do without compromising your long-term business goals.

Perhaps you really can do everything, but can you give all of them your best? Probably not. You need to get the help of people who have the skills and talents that can do the work for your small business growth.

Final thoughts

Try to avoid making these common mistakes as much as you can. With all these tips in mind, you’ll be better equipped with the knowledge, skills, and strength to take your small business to new heights.

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