Oh my - Oh great! This is my first-ever blog and I choose a title using three words that bring worry, fear and concern to the hearts of many...."13", "deadly" and "sins". Some people will do just about anything to avoid these words being in their lives. And for all intents and purposes when it comes to this blog...that's a good thing for all the business owners and budding entrepreneurs who may be reading it!
These 13 deadly sins should definitely be avoided. Be aware of them for you may even see them evident in your business. (oh my!) But, fear them not! Tackle them head-on! Don't worry about them. Instead, develop a plan for their avoidance or elimination. Then center all your concerned energies on implementing your action plan and go "sin no more!" Halleluiah! :0) Amen!
13 Deadly Sins That Will Wreck a Business/u>
Lack of management skills and knowledge in business operations.
If you don't "know" surround yourself with those that do or get the training yourself.
Lack of Planning
If you fail to plan…you plan to fail. It's as simple as that.
Equipment Extravaganzas - Too Much/Too Little/Totally Wrong
Don’t buy everything your little entrepreneurial heart desires. Don't buy it all at once. Don't use your hard earned cash to buy a long-term hard asset. Figure your five-to-seven-year plan then purchase your needs accordingly.
Assuming that once you’re open for business or that new product/service is introduced money will start automatically rolling in to meet all operational demands. It won't. Have a cash reserve on hand to support your new effort until that effort can support itself. Without this reserve you run the chance of starving it to death.
Poor Cash Management
Overspending on Overhead. Simple put - control the “Who owes you and who do you owe?” factors.
Improper Pricing – Charging too Little
Price to Market or Price to Cost Plus Markup.
Your price must cover all costs. Always remember the “BU$INE$$ Factor” - You are in business to
change those Ss into dollar signs! If you're not doing this you're not in business - you're in hobby. The cheapest
or lowest price is not always the best. Your price impacts your product/service's image...your brand. Cheap
price is too often associated with cheap products and poor service. In the end accept four realities: 1) You're the
expert; 2) You have something they don't and they want or need it; 3) You've got to cover your costs; and 4)
You're worth and worthy of every penny!
Lack of Sales
Insufficient customer base due to not identifying your distinctive niche or meeting the needs
held within the marketplace.
Failure to be Firm
Never be afraid to pick up the phone and say “Your bill is past due. When will I be paid?” "No that's not what I ordered. Make it right." Remember, one of the strongest bones in your body is a "backbone!"
Dancing with the wrong kind of client. Giving one client too much power, too much time in your workload
balance. Dance with the right partner and develop a balanced client/customer base.
Ignoring or Not Understanding the Importance of Long Term Relationships
Don’t make the mistake of negotiating every deal like you’ll never see or need that client or
person ever again. Take time to cultivate relationships. Look out further than the tip of your
Forgetting About Taxes
Assuming and holding onto the false hope that “the money will be there when the time
comes.” It won’t be! Set it aside immediately or you’ll find yourself answering to Uncle Sam
and the Ohio Dept. of Taxation.
Growth must be managed and nurtured. Just as a baby or child needs nurtured and taken
care of…so does your business. Only give it what it can handle. It will tell you when it can handle more.
Reinventing the Wheel
No entrepreneur is an island. Others have been or are on your same island. Learn from each
other through business networking groups, associations and on-line bulletin boards.