|
|
What pitfalls of running a small business should I avoid?
Home » Small Business » Being Successful...In a Small Business » What pitfalls of running a small business should I avoid?There are many benefits of running a small business, such as being your own boss and reaping the rewards of your hard work for yourself rather than increasing profits for someone else. But all of those benefits can go up in smoke if you encounter one of the many pitfalls of running a small business.
• Not developing and following a business plan. Spending time in the beginning developing a business plan is not wasted time. It will be your guide and the basis from which you make decisions, if you follow it.
• Not having adequate financing. Whether your business is self-funded or funded through borrowed money, most experts would recommend that you have enough to provide a 12-month cushion to handle all of your expenses with no revenue from the business.
• Poor customer service or product. You can work as hard as you like and if your customer service is poor or your products are not of high quality, then you will not succeed. Develop the mindset that every encounter with a customer matters, and instill this mindset in your employees. If even one customer is not satisfied, do what it takes to make it right.
• Surrounding yourself with the wrong people. Just as you would not leave a young child with someone you do not trust and respect, you should not involve people you do not trust in even one small part of your business. From the person who cleans the floors to the person who does the accounting, choose people you trust, treat them well and train them according to high standards.
Sources and Additional Reading:
1. U.S. Small Business Administration (http://www.sbaonline.sba.gov/)
2. “Starting a Small Business: The Feasibility Analysis” by Michael D. Reilly and Norman L. Millikin (http://www.montana.edu/~wwwcommd/newfeasibilityanalysis.htm).
Related Being Successful...In a Small Business Articles
- What is a small business?
- How do I determine if I am well suited to owning a small business?
- How do I get my small business off to the right start?
- How do I market my small business?
- What pitfalls of running a small business should I avoid?