« Online Business Benefit or Mythe | Main | Small Business Taxes »

Common Small Business Mistakes To Avoid

When first starting your small business you may not realize that
there are mistakes you may make at different stages of your
business’ growth that can slowly kill it for months or even years if
you don’t watch out for them?

These mistakes are not just restricted to the new business
owners. Many operating businesses, including those you may
think are “successful” because they've been around for 10 years,
are often still making them… and are most likely losing a lot of
money and/or wasting a lot of time in the process.

Although some of these mistakes seem aimed more at service
type companies, they really do fit the bill for almost any type of
business. Let's go over a few examples that you can use for future
reference.

Underestimating project or service time is a big one.

This relates to service companies as well as companies that sell a
product. This is a service company’s bread and butter. If you don’t
estimate the time and effort required to perform each service your
business offers you will lose out and there is little you can do about
it except learn from it. The best way to estimate time required to do
the job is to do it once yourself or watch your best employee perform
the task, then determine the appropriate fees that you should
charge for the service.

Not knowing your company numbers and setting prices to low.
Notice I emphasized the word “your”. It is a common mistake to
use a competitor’s fees as your pricing gauge without actually
knowing why they use those numbers. Consider for a minute what
will happen if you take a competitor’s price, cut it by 10% and then
start selling.

What if the competition has a bad pricing structure and is barely
making money or even losing money?

What if your costs are more than theirs?

While it's a good idea to know your competitors pricing structure
and maybe even use it as a starting point you shouldn't base your
whole strategy on it.

Different market sectors have their own variables as far as costs
go and you should be aware of them for your project or product
pricing. What you pay for a product you are going to sell is not the
only cost to have in your head when you are pricing your products.
Considering how much your labor and materials cost for a service
is only a part of an hourly rate.

Employees also cost more than just salary and not every
employee is part of your labor cost. Every company has insurance
to pay for. There are overhead expenditures, quality factors that
need to be part of your pricing structure. What you include as
“standard services” or “standard product features” as well as job
site etiquette or in store service or warranties all need to go into
your pricing.

Not Charging for all of your time and costs is mistake most
business owners will admit that they made. For instance let's say
that you run a service company. You can’t just undercut your
competitors price to acquire the job; you have to ensure that your
costs will be covered in your rates. Stores undermine themselves,
for example, when they put more people on the floor for customer
service but don’t charge for it. These things cost you money and
when your competitors don’t do them it costs them less money.

As a business owner you need to believe that you are providing
your clients worthwhile wares that deserve to be paid for. If you get
the chance to explain why your prices are higher, then take that
opportunity and do it. If they don’t like the fact that you include
things that others charge extra for later or that you treat them
better, then they are most likely completely price shoppers. You
don’t want them as regular customers anyway. Trust me.

Not getting paid fast enough is another one that easily creates a
cash flow problem. As long as you are actually making enough
money to pay the bills, this problem can be solved, prevented or at
least managed. To avoid this, bill customers very promptly, after all
that’s the reason you are doing the work- to get paid.

-    Failure to have solid systems and procedures in place.

Having no procedures and systems in place for tasks like billing,
collections, payroll, interviewing, hiring, job responsibilities, manufacturing,
operating equipment, maintaining equipment and inventory
procedures will help things run smoothly and reduce expenditures
as well.

-    Spending too much advertising money without tracking the results.

There is no point in a marketing campaign if you do not put things
in place that allow you to measure how well the plan is working.

-    Spreading yourself too thin is a classic mistake made by every
entrepreneur.

The key is to figure out when you are at that “wearing too many hats” point
 and start getting some help. Not getting help or waiting too long can kill a
company. The three big issues people like to tackle themselves but are
usually the ones they are the least knowledgeable about like; legal issues,
accounting, bookkeeping and daily operations issues.

Keeping an eye out for these potential problems is always a good
idea, the end of a year is an excellent time to make sure you are
not making these errors. Take the time, or make the time to
determine if have issues to address. If you don’t know how to stop
or fix the mistakes, then find some help. The success of your
business may depend on it!



Leon Edward is the blog owner and webmaster of  http://www.HomeBusinessIT.com where you'll find internet business ideas and home business management info , legitimate online business reviewed , home business management and marketing information where you can even get step by step  affiliate marketing training to start your own affiliate marketing online business

Attract Money, Success, Love, Anything You Desire !


Get Your FREE Mind Movies and Create Your Ideal Future. Visit my special offer link at
http://www.mindmovies.com/vid1-2/?13757


New people are succeeding in opening their own online niche store  or supplying what sells well on eBay . Get A Free Trial for Wholesale Products To Sell at  Products To Sell On eBay . Start with eBay Basics

Learn hottest technique for internet marketing at Video Marketing

Model Millionaire businesses at successful internet business

Learn the vital aspects about legitimate home businesses in a FREE comprehensive special report  and Internet Business elibrary, visit http://www.homebusinessit.com/newsletterI've joined top earners on the internet with  Internet Home Business 

Learn to  Day Trade , Beginners Day Trading   , Learn Affiliate Marketing , Home Business Management  Sigma Certification  Six Sigma Black Belt Certification

More Energy than money?

Learn How to Turn 5 hours a week into
$500 per month, just visit http://www.StartAHomeBusinessFree.com 

Every year, the government--local, state, and federal--gives away millions of dollars to people just like you for new business ideas. Leon Edward shares information on government funding, Federal, State ,Local Grants , Home Business Management, Setting up a home business ideas, affiliate marketing software and business plan, Grant Money To Start A Business , where to find start up business grants, sources, how best to fill out applications, grant management step by stoep tips, setting up a business steps at his website http://www.business-idea-grants.com

Selling Online? Find Wholesale Products To Sell at products to sell on eBay 

Vacation More, Travel more with family and friends. Learn to budget vacations and save while still getting great vacations. visit Cheap Condo Rentals .After you make tons of money, you may want to visit my  cosmetic surgery website , maybe a tummy tuck  .  Visit Leons Increase IQ improve brain website , increase concentration, be smarter. entrainment cds

Being Rich and Successful is great but you must remain healthy and happy. Maintain your health  as you age , visit my anti aging health website with anti aging foods, age specific anti aging exercise, resveratrol health info, resv anti aging or purchase resveratrol and  affordable  anti aging HGH .


Finding A Job In A Recession can be tough ,  learn or update your computer and business skills at office online training with MS Office Training
but here is what is easy...

Use you subconscious mind  and infinite mind to ... Try Brain Software

 

 Improve your self confidence and looks with cosmetic surgery 

 

 

 

 

 

 

~


Hosting by Yahoo!