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Common Small Business Mistakes

A couple of days ago, I began to think, and what are most often mistaken? I mean us – small entrepreneurs. What are our most common mistakes? I thought, honestly, two days. Well, at least two days later the same list of typical mistakes of small business appeared. I will share it with you. I don’t know whether you agree or not, but I see him like that.

Let’s talk about typical small business mistakes

I emphasize that I did not conduct any research and did not deal with statistics. This list of 10 typical mistakes in small business is just the fruit of my personal reasoning on this subject. But at the same time, I am sure, to be honest, that many entrepreneurs make most of these mistakes and not rarely. So meet:

The 10 most common mistakes in small and micro businesses
1. No business plan
It’s not about creating a business plan that is formal and official, as I call it (which is usually done to apply to different institutions or to an investor for a loan or investment), but when there is no plan at all, how do you know where to start your business and what do you need to do? But many do not, really. I emphasize once again that I myself am not a supporter of large “official” business plans, most of which, by the way, are just for show and done. But you need to understand this simply as instructions for starting and running your own business. And the instructions are released even for toys from kinder surprises. What is easier to open and run a business, you want to say?

2. No market research
The same thing – I’m not saying that we need to order research from RBC, but do not know anything about our niche at all – it’s nonsense! Well, at least look at 20 competitors’ sites and call 10 suppliers. Such mistakes in a small business are usually not forgiven.

3. Making decisions based on assumptions
This is a consequence of the two factors above. You did not research anything, did not plan anything, and, based on some assumptions, make very serious decisions. And in business, decisions are not frivolous, by the way. Suppose you think so, you think that you know this. And make this or that decision. And why do you think that another 100 (well, not a hundred, this is an abstract figure, of course) potential customers also think? Did you ask them? Or they decided, since it seems so to you, the way it is … But how would it not happen that you will buy from yourself. Indeed, in business it is more important that the buyer seems loyal, not the entrepreneur.

4. No Upsale and Cross sale
Often do not offer customers additional services and products. Yes, which is often the case, most do not. Simply put, they are not up to selling more or more. Bought a shirt, no one to offer a tie. Probably not necessary for him, right? Otherwise, he would have asked … Well, yes, of course. Return to the previous paragraph.

5. Insufficient work with the customer base
So busy looking for new customers that do not pay attention to old ones. And they, by the way, are always more willing to buy from you than those whom you are trying to recruit. Because they buy from their sellers while you lose your customers. Pay attention to them – to sell twice to one in any way is better than once to two. This is the most basic mistake of small business.

6. Sales funnel – what is it?
Well, here we are. I wrote about this – here and here. Take care of it, it’s urgent.

7. VKontakte sitting with friends
But do not sell? This is done only in the store and in the office, right? Not using social networks in your business is a business crime. This is a huge chance to grow your business.

8. Technology is evil
Why, you may ask? Are you still writing in a notebook? And then, as you need to find something, spend 4 hours. No, really, guys, so many people are still sitting there somewhere. They got used to it like this … We live in the information age, whether we wanted to or not, we were not asked. So, technology will have to learn or to stay behind – to whom how.

9. We stand still
Anyone who really wants to develop a business should really improve it every day. Everyday. Stability is an indicator of mastery, only in sport, not in business. In business, only constant growth is an indicator of skill.

10. We are afraid of changes
Vasya began to work much worse, but he has been with us for three years already. And the fact that for the same money Lenya will do more and better, nothing? Who pays something? And this is not only about employees, unfortunately. We are used to some things, and by default they suit us. Right? Why change something?

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