Common Business Growth Mistakes
What Entrepreneurs & Small Business Owners Can Do To Stop Stagnancy
Sep 24, 2006
No Plan for Growth
Few would attempt driving a car without some sort of training before getting behind the wheel for the first time. Yet most entrepreneurs start a business without thinking about how they'll navigate the roads of successful entrepreneurship, either. If you aren't sure about where your business is going and how before you make a decision, then your small business has no plan for growth.
Wrong Business Type
Many entrepreneurs find themselves owning their own business out of rashly-made decisions: they needed immediate cash, were laid off, found a location that motivated them to do something special (or renew a business that otherwise would have gone out of business), and so forth. Others start knowing they have a skill in the specific field they are working in, but can't take care of the sales or administrative tasks that also need getting done to survive. For those in this situation, the next step is to determine your daily tasks, a topic covered in the next article here at Entrepreneurs.
Wiggly Financials
Businesses thrive when they have a solid financial basis to stand upon. Yet many experienced entrepreneurs (ones who have been in business more than a year, by my standards) still have no idea where they are at when it comes to cash-flow, projections, and profits. Fixing this mistake entails creating a cash flow forecast and watching it closely to ensure there are no blips and 'wiggles' with the financial picture.
Holes in Market Research
Did you define who your market is before starting? Have you revisited your marketing plan since you wrote it down initially? Many entrepreneurs forget this crucial step in their growth planning process. Competition is the name of the game when you are in business for yourself, so you'd better know exactly who, what and why you are targeting, when. You may have the best thing going, but if no one knows about it, needs it or understands why it would be beneficial to their lives, your thing matters little, if at all.
Lack of Professional Advice
How many people are involved with your business that are considered professionals? (i.e. lawyer, accountant, regulatory body, government, banker, etc.) If you are having issues related to any of these specialties, the costs you'll incur to speak to a professional will quickly and far outweigh the need.
Unwillingess to Learn What Needs to Be Done
If you are the CEO of your company, one of your responsibilities is to know exactly where the accounting side of your business lies. Not your strongest suit? Don't merely give it away to someone else; learn as much as you can on the subject so that when you say, "I'm the CEO of ____" you can not only do so proudly, but with the expertise required to answer any related questions as well.
