Over the last 10 years I have been to lots of Networking functions.
During this time I have seen a lot of small businesses come and go.
I always think it is so sad when someone has to give up on their dream, after all I am in the business of helping people achieve their dreams.
So, this week I thought I would take a look at some of the reasons why it can happen.
We all know the statistics for small business failure, but why do so many small businesses fail? Why do so many businesses struggle on with only just enough clients and just enough income? Below I am going to share with you 7 of the top mistakes I have identified from all the clients I have worked with over the years.
1.
Believing that being good at what you do is enough.
So many people run their business as if they were still an employee.
They focus all their energies on delivering a great product or service.
Yes - of course you need a great product or service - but you also need to realise that you also need to run a business! You need to be good at other things like planning, marketing, sales, money, management skills and you also have to be self-disciplined and self-motivated! If you can master these skills you're your business will soar.
If you know that you lack in any of the areas above - then do something about it.
Get a book, go on a course, hire a coach - commit to learning & growing & your business will do the same.
2.
Ineffective marketing materials.
Too many people spend weeks designing a flash company brochure and thousands of Rand printing them up.
People often do the same thing with web sites and they work on the principle that "If I build it they will come!" Guess what - they won't.
Any marketing materials must work to bring you clients otherwise you have just wasted your money, so spend more time figuring out what will get you the best return for your money before you rush into creating an expensive mistake.
The other side of the coin is not spending any money on a decent business card or logo.
Don't get your relative or friend's daughter to do it just because it is cheap.
If you want to be professional and be taken seriously then have a decent business card created and get it printed professionally - don't print it at home & make your own.
3.
Not becoming a great Salesperson.
The person who is the best marketer will always get the most new clients.
Even if you have the best product, if you don't know how to market it effectively and close the sale, you will struggle.
Marketing is something you need to be doing every single day and you should also have a plan in place for the next couple of months.
Sales & marketing is not just something you do when you have some extra time or when you bank balance is looking a bit bleak.
If you have never been taught how to sell - then learn - read a book, practice your skills, ask for help from a friend.
Sales bring turnover and cash into a business - without that your business will never grow! 4.
Putting all your eggs in one basket I've seen businesses sink because they depended on only one or two high profile, high paying clients.
This is a mistake.
Always make sure you're in a position that if you lose one client your business can still survive and thrive.
5.
Doing it by yourself Yes, you are the owner and you make the decisions.
But every so often you need someone else's input or you need some support with a new project.
Working with a coach or mentor can help you stay on track and achieve far more in a shorter period of time.
You could also consider joining or creating a mastermind group of successful people who can support you and push you outside your comfort zone.
6.
Using your time badly Time management is a huge issue for most people.
Often clients tell me that they feel like headless chickens most of the time, running from task to task.
If you don't have a clear idea of what is really a priority or what tasks really generate your income you can run yourself ragged and it could cost you your business.
Surfing the web, checking e-mail constantly, chatting on facebook, and other time thieves need to be avoided at all costs.
Track how many hours each day are spent on client generating activities or on servicing clients and how much time is spent otherwise.
You will be amazed at the results! 7.
Lack of planning I know that you wouldn't go overseas without deciding where to go - what you were going to spend your money doing, how much money you would need to take with.
So why would you possibly think that running your business without a plan is OK? When you have a vision and a plan you can keep checking that you are doing the right things - that you are not getting sidetracked.
Keep asking yourself "Is what I'm doing supporting my plan and my goals"? We are coming up to the end of the year - a great time for thinking, choosing new directions and planning.
Try to plan out at least 6 months ahead.
What marketing you'll do, what you need to learn, what you need to improve on and exactly how much money you intend to make! If you have made or are making any of these mistakes above - It's okay, we've all made them at one stage or another.
Realising it is the first step - then just start taking action to change the way you are doing things.
That way you can start to experience the real success you deserve.