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| Small Business Administration & Management |
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Business Administration and Management - Business mistakes to avoid
Small and start-up businesses often have similar problems: cash flow maintenance, marketing, management, employee-relations, etc. In the mist of economy uncertainty, some mistakes are lethal to a company's chances of survival. These include:
Unexamined Costs:
Small business owners need to analyze every expense, and reexamine them regularly. When an expense can be reduced or eliminated, action should be taken immediately. These include utilities, telephone expenses, travel expenses, marketing costs, etc.
Neglected Employee Concerns:
Keep in mind that your workers may be burned out and stressed over working harder for smaller wages and reduced benefits. A small company's success is in direct proportion to the talent and dedication of its employees.
No Back-up Fund:
Every company needs residual cash to weather sudden temporary downturns in business. Avoid dipping into this fund for ongoing expenses.
Bad Debt Collection:
Many of your credit or term customers might be slow in paying. Working with them may help create customer loyalty, but you should never jeopardize your company's cash flow in the process.
Unproductive Marketing:
It's more important than ever to test every aspect of your marketing to determine which are making money and which are losing. Almost every ad or ad campaign can be tested to see how much revenue it generates for each dollar spent.
Unfocused on Customers Expectations:
Are your prices too high in comparison to competitor's? Are you offering products that customers are deciding to do without when cutting back on their purchases? Do you have a superior customer service? These questions and others can help you reshape your customer service and help you gear up for success.
Lack of Objectivity:
Don't become emotionally attached to new ideas and proceed without careful analysis. Before committing time or funds to new product lines, services or even a new business, consult with specialists experienced in the field, or conduct a market survey yourself.
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