5 Chronic Small-Biz Mistakes to Correct
To
paraphrase Yogi Berra, chronic business mistakes are deja vu all
over again.
Missteps,
miscalculations and outright duds are unfortunate, yet ever-present
starters in any small-business lineup. If nothing else, if it
weren't for the battalion of snafus that lay in wait, every mom and
pop kiosk would sport a bottom line that rivaled the New York
Yankees'.
But what can really spell the difference between an established
powerhouse and a perennial cellar dweller are chronic mistakes —
those repeated and overlooked blunders.
Here are five
persistent pitfalls that may apply to you and your business, along
with steps to purge them.
Mistake 1:
Advertising always works.
If, say, you've been running a particular ad spot for years but with
little to show for the expense, you've tripped over the assumption
that advertising in and of itself never fails. Not so. Not only is
it critical to understand and embrace your business's particular
niche, it's equally imperative that you know your target market and,
in turn, pin down the advertising media that best hits that segment.
"The biggest mistake I see is putting advertising out there without
a clue if it's really reaching the right people," says Tom Egelhoff,
who publishes SmallTownMarketing.com. "You've really got to define
your company's market. That, and you have to hold any ad sales rep
you're working with accountable for the match of their media with
your market."
Mistake 2: Build it
and they will come storming to your door.
Akin to the mistaken sanctity of advertising is misdirected faith in
the inherent appeal of your business. Just be there, slap a few ads
in the local fishwrap and customers are queuing up by the break of
dawn. Success mandates legwork. Related to that, another ongoing
oversight is failure to get out into the community and network on a
personal level, both with potential clients as well as business
associates. "You can buy into the fallacy that advertising alone
brings in business — but it only brings in lookers," Egelhoff says.
"Networking creates buyers who will come to you because they know
you or have heard of you, not from a cold ad."
Mistake 3: Love you,
no matter what.
Although the human element to gaining attention and relationships is
essential, don't look past any relationship that, over time, is more
problematic than productive. Perhaps you've had a client for years
who chronically moves with the speed of erosion when it comes to
paying his tab. By the same token, you may have held onto a sub-par
employee in hopes that her performance would improve over time. Take
some time to review carefully the people with whom you work to see
if any element of your relationship has deteriorated over time. If,
by chance, you spot someone whose presence may be doing your
business more harm than good, don't play the nice guy at the expense
of your operation. "If someone is keeping you up at night, or an
employee simply hasn't worked out, it may be time to sever that
relationship," says Lisa Kanarek, publisher of HomeOfficeLife.com.
Mistake 4: One size
fits all — always.
Many chronic problems are creepers — those seemingly innocuous
twinges that grow into chronic pain, often at a slow enough crawl
that makes them tough to spot. Nowhere is that more the case than in
your physical workplace. For some, that may mean a Lilliputian-sized
office that's somehow handling an operation that over time has grown
into Gulliver. By contrast, there's the business that, for years,
has doled out cash for office space that's as empty and unwanted as
a Pauly Shore film festival. Give your workspace the once-over
routinely to make certain that what you have for space is, in fact,
what you need. Pay particular attention to home-office space where
the price of success can, after a year or so, mean needlessly
cramped quarters.
Mistake 5: Alone is
best.
Locked in a lone wolf persona, one final persistent pitfall —
particularly for home-based and startups in the first few years — is
the mistaken notion that it's more efficient to do it all yourself.
Trouble is, looking after one task means idling another — and that
may ultimately slow profitability and growth. If you're spreading
yourself too thinly or feel that even 24/7 doesn't allow enough time
to address every need, see if bringing on some help may, in fact,
generate more income than outgo. Break down the numbers to see if
the expense of a sales rep or marketer may be more than offset by
the productivity it frees up for you. "For instance, marketing can
get you work, but when it comes in you have to stop marketing to
perform that work," Egelhoff points out. "And, when the jobs are
done, the income stops until marketing creates work again." |