5 Mistakes Business Owners Make
By Aliyah B.
In my role as Chief Sales Strategist for YBSG, I have the opportunity to analyze businesses and their respective practices. Years ago, I read a book that discussed reasons why businesses fail. There was one chapter that truly peaked my interest. In the chapter, it was noted that most business owners have maintained their prior employee mindsets. Meaning, they’ve never truly adopted the fact that they’re now required to master the role of employee, entrepreneur, and manager. The chapter culminated with this finding…most business owners would rather solely work from the employee perspective. Because essentially the employee perspective is that thing that they truly love doing – their passion. The aspect of ownership and management of the business is a concept they would rather not be concerned about.
Boy, was that book accurate! In my findings, most businesses fail or rarely scale because they are stuck in the employee mindset. The business owner may have the most unique and innovative product/service in the market, but the business owner fails to realize there’s more to the business than just launching a product or service. Here are a “few” common mistakes business owners make that could lead to the business closing their doors or stagnate growth!
No Marketing Plan
It is no secret that effective marketing efforts lead to sales. Most business owners try to do is put the sales process before the marketing engagement process. In the real world, a successful marketing plan involves many layers of penetration and sales funnels. Not realizing the importance of marketing will lead to dire consequences.
Lack of Business Structure
A Business without a plan, structure, or processes is not a business – it’s an idea. Businesses should strive to at least complete the minimum formation process. It’s also essential that businesses implement key systems and processes such as follow up processes, sales processes, and so on. Systems such as CRM are the heartbeat of businesses, yet businesses typically forget important systems that maintain their businesses viability. Let’s also mentioned poor pricing practices. If businesses are not priced properly than profits will suffer significantly. Lastly, businesses who lack a customer focus should be included in this discussion as well.
Not Reinvesting Earnings Back Into The Business
I’m going to put this as simple as possible…not reinvesting earnings into new programs, operations, or innovation is a true RECIPE for disaster!
Wearing Too Many Hats
Understandably, business owners would do themselves a big favor if they knew when to complete a task themselves or outsource the task to someone more qualified. Experience and knowledge matter. A business cannot be operated by inexperienced individuals. It’s best to get help where help is needed. If necessary, hire outside your scope or primary focus. For example, a business owner should hire a CPA if they’re not experienced in corporate accounting.
Thinking Clients Will Magically Walk Through The Door
Terrible mistake! Just because a business opens its doors doesn’t mean clients will walk through the door. Marketing efforts, Advertising campaigns, & Sales Strategies play a major role in driving sales.