8 Small Business Mistakes You Should Greatly Avoid

The more your business becomes successful, the more serious you take life daily that you sometimes forget to look at all your moves in a different detached perspective. You are sometimes unaware that you have committed the great common business mistakes that are every crucial in all your business moves. Of course, you surely could have avoided it if you only knew it. However, do not worry about it as this guide is here for you to stop any further pain in managing your business towards sweet success.

Here are the 8 hidden but terrible mistakes every small business owner should avoid.

1. Improper Project Estimates

Service providers as well as those people selling solid products critically encounter this factor. This is all about estimating your time and effort for the whole duration of the project. The greatest mistake small business owners usually commit is to underestimate the actual time for the project. This will eventually lead you to destruction and bankruptcy if not address earlier.

Stop this hidden mistake now, no matter how tempting it is to close a deal faster. Start recording normal project times and set real-time estimates based on these records for your next clients. Remember to add the variables that each of these projects need for a more reasonable service.

2. Incorrect Pricing

Some small business owners usually set confusing and inconsistent prices. This sometimes happens when they found competitor’s prices as either higher or lower than their original list. You can base your prices from an existing competitor’s price as start-up guide but do not stick to it forever.

You may have the same business but not exactly the same procedures and plans at hand. You have to set a fair price based on different factors that your business currently holds.

3. Not Charging Quality Time and Effort

It is not bad to put some extra care on the services or products you are working for clients. What irritates here is the fact that you seem to ignore the special quality of your product or service and the money and effort you put into it.

You would say that this is how you conquer competition. Yet, you are investing more money and creative time and effort for a higher quality. Are you just waiting for your downfall and let competitors laugh at your face?

4. Getting Slow on Payments

This relates to the old familiar cash flow problem. There are three major ways to get you out of this mistake.

– Start billing your customers at the earliest possible time. Get ready with your invoices according to your company procedures and system

– Try paying your employees or contractors for at least once a month. Talk to them about payment mode even before they are hired to avoid conflicts.

– If possible, get a credit card for your company. An accessible credit line is a good choice if you will have to deal with clients who normally pay within 60 to 90 days.

5. No Organized Solid System and Business Procedures

This mistake pertains to the general administrative procedures that need to be established in the first place. Things such as the hiring process, human resource development, job descriptions and responsibilities, collections, billing, employee benefits, vacations and payroll terms should give your business a solid structure that will define greater company identity.

If you are running your small business alone, set a well-defined systematic procedure that will make everything organized as your business grows. This will save you a lot of headache by the time your business expands and calls for more employees and subcontractors. Be ready for any positive change without facing much chaos.

6. Advertising for Nothing

Marketing involves advertising but most business owners do it without tracking results. If you are paying for advertising your business without tracking results regularly, then you are just doing just to tell others that you advertise. You are just wasting money in the process. Make advertising beneficial tracking and analyzing results for more success.

7. Wearing Multiple Hats at a Time

This brings a lot of stress and multitasking issues that could lead to burnout. Know your strengths and weaknesses in terms of the business skills you are dealing with. Do not overwork or take all roles all the time. Do the things that you really love doing here and leave those tasks you somewhat hate to freelancers.

8. The Old Outsourcing Problem

Outsourcing or delegating tasks to some smarter freelancers is not a waste of money. Just think of how much money you could have actually earned by now if you only focus on running your business and marketing it for continued success rather than doing all the tasks for a slower progress.

Check yourself and your business about these crucial business mistakes you may have unconsciously committed along the way. You may seek professional advice from consultants, accountants or even corporate lawyers to help you succeed further.

8 Online Business Mistakes to Avoid

Starting a business online takes far fewer resources than trying to build a physical retail business or franchise but it is still hard work. Here are 10 online business mistakes to avoid.

1. You don’t have a business plan.

Planning is important to your success when you’re starting your own online business from home. There is no ready made job description telling you what to do each day. If you start your day or week without a plan of what you are going to do you can lose many hours or even days of fluffing around and not really accomplishing anything. Have a clear, and achievable, list of tasks that you need to complete each day.

2. You are not organised

You have to remain organised even when the work starts to pile up. Starting your own online business from home requires a fair amount of paperwork, record-keeping, daily planning and other essential tasks. Keeping everything organised is critical.

3. You don’t know how to get customers

Once you have your products ready to sell on your website you cannot just sit back and wait for the customers to come rolling in. Make sure you learn all the right methods for getting customers to your business, as no customers means no business.

4. You don’t have anywhere to work

Make sure you have a place to work. Don’t leave your business paperwork and information scattered around your house. You need a place to keep all of this where it won’t be lost among other possessions or simply misplaced.

5. You take advice from friends and family

Although they can be well intentioned, friends and family do not necessarily make trusted business advisers. Separate your online business from your family and friends and look to join an online community of like minded entrepreneurs for your business advice.

6. You are always interrupted

When you are working, it can be hard to sit down and focus if your phone is constantly ringing or if you’re dealing with a child or family matter. You need to treat your online business like any other job and set aside blocks of work time and restrict outside communication.

7. You work too much

Starting your own business online is a lot of work. It’s very tempting to spend every waking moment working on completing tasks. But be careful that you do not burn out quickly. If you put all of your energy and time into your business, you’ll become worn out and having nothing left for your family and friends outside of your business.

8. You don’t bother to learn new skills

The online business world is competitive and it is vital to keep up to date with the latest technology and you have to know what works and what does not work. Invest some time and resources in learning from others who have gone before you and had success.

Top 4 Business Mistakes Law Firms Should Avoid

The business of law has its own set of rules and regulations. Nevertheless, as with any other businesses, it can suffer due to certain mistakes, industry inaccuracies, and errors made by law firm or its staff. Whether your law firm is large or small or whether you have a solo practice, these business mistakes can lost you dearly.

Given below are the four most common business mistakes that law firms should avoid

1. Not Focusing on Your Niche

This is particularly applicable to smaller law firms and solo practices. In an attempt to gain more clients and business, there is a temptation to spread yourself too thin and take on cases outside your area of expertise. Don’t give in to this temptation. Focus on your niche, as it allows you to deliver greater client satisfaction that will automatically enhance business and profitability. Once you are well established, you may expand the services your firm provides by hiring experts in other areas. Larger law firms that handle diverse cases should assign specific areas of work such as corporate law, environmental issues, and real estate to specific people. Having everyone look at everything is a sure recipe for disaster.

2. Not Marketing Effectively

Some law firms do not believe in marketing at all and want to rely completely on word of mouth and referrals. This is a mistake. At the other end of the spectrum are law firms that spend heavily on advertising and are puzzled by the lack of results. Marketing is an essential tool to promote your law business, but it needs to be used intelligently to offer maximum value. It is not necessary to have a full-page ad in a national newspaper. You may get better results with a small ad in a local magazine that has a greater chance of being read by your target clients. Your website can also serve as a cost-effective marketing tool.

3. Not Paying Attention to Receivables

Providing the best services to clients costs money, but when clients don’t honor their bills on time, most lawyers are reluctant to follow-up. Some clients may take advantage of you and delay payment even further. If this situation continues, you will be left low on cash, which will ultimately affect the quality of service. Remember that clients will not leave your firm because you ask them to pay what they owe, but they will surely leave if your level of service goes down.

4. Not Communicating with Clients

Not communicating is a common mistake that most lawyers commit without even being aware of it. The volume of work in a law firm is so large that you tend to be overwhelmed and may actually have no time to communicate with your client. Sounds unbelievable? But it is true. Communication with your clients is very important for business. You may be working very hard for their interests, but they need to know it. Giving regular updates to your clients by phone or email is essential. These are some of the most common business mistakes that law firms regularly make. Avoiding these mistakes will help keep your clients happy, and you will be able to retain them longer than you would otherwise.

The Golden Rules

  • Find your niche and become an expert in it
  • Market yourself well
  • Pay attention to cash flow
  • Stay in touch with your clients

Are You Making These Business Mistakes?

William Gladstone said that ‘No man ever became great or good except through many and great mistakes’.

Mistakes are one of the best learning opportunities we have in our businesses but sometimes we’re not aware of them, choose to ignore them (praying the situation will change) or try to dodge them by staying in the comfort zone.

If you feel that you’re not making progress check out these 6 common business mistakes that can keep you spinning your wheels…….

Mistake # 1Lack of vision or not being on purpose in your business and your life can have you heading off in the wrong direction, wasting time and energy on the next bright shiny thing that promises to make you money or solve your problems. When you get on purpose life begins to flow. As the author Dr Wayne Dyer said, ‘When I chased after money, I never had enough. When I got my life on purpose and focused on giving of myself and everything that arrived into my life, then I was prosperous’.

Mistake # 2Negative and critical thinking patterns can blind you from noticing positive aspects and potential opportunities that surround you every day. These limiting beliefs and low expectations can keep you in that familiar comfort zone when you could be taking a few risks, expanding your experiences and who knows ‘hitting gold’ from time to time!

Mistake # 3Not having a handle on the numbers! When you don’t keep track of conversion rates, profit margins or pricing then it’s difficult to make decisions that are going to have a real impact on your business success for the long term.

Mistake # 4Offering too broad a range of services for too wide an audience. It’s tempting to want to offer as much as possible to as many people as possible, in the hope that something sticks, but the problem with this approach is that it dilutes your message and your brand. Experts and specialists are more sought after and are usually paid higher fees than generalists.

Mistake # 5Inconsistent marketing. When your tweets dry up or your blog has not been updated for months it sends a message that you are neglecting your business. It may be that you’re busy but keeping your marketing fresh and engaging keeps you at the forefront of other people’s minds for when they do need your services

Mistake # 6 – Neglecting your self care. Running a business can use up huge amounts of energy and time but business owners often put themselves at the bottom of the list of who they look after. Neglecting your health and vitality can lead to exhaustion and burnout in the long run. If you are a solo business owner you are your business’s most important asset. So put the oxygen mask on yourself first!