Having run a business 157 years ago when I was 21, and now in the process of developing a business plan for a start-up, you learn all about business mistakes. Even big companies make them. Leave them unchecked and everything goes belly-up.
The 8 most common mistakes I’ve noticed are:
1. Not planning. Every business needs some sort of road map that covers all sorts of possibilities and financial developments.
2. Not understanding the difference between cash flow and profit. One is what the accountants tell you, the other is the folding stuff that comes in through the door or into your account. And make sure there’s enough there to see you through the lean times.
3. Failing to keep an eye on your competitors. Even if you’re ahead, it pays to keep tabs and pick up new ideas and see where your weaknesses are.
4. Failing to keep your customers happy. More important than building your customer base. If you fail to do that, you end up losing them as soon as you get them in.
5. Spending too much money or going for the “hamburger and chips” solution of getting something that’s quick, nasty and of no real value. Top advice and services can make a huge difference and it’s false economy to skimp.
6. Keeping the accounts and business operations in your head. Wish I had a dollar for every small business owner I’ve met who does this.
7. Failing to stand out from the pack. You have to offer something that’s different, even if it’s just one point of difference. In managementspeak, it’s called a Unique Selling Position (USP).
8.Failing to look after yourself. Running a business is time-consuming, gruelling and it can chew you up. But again, it’s false economy to ignore the important stuff like family, friends, leisure and time out.
But there are other mistakes too.
