Archive for September, 2012

6 Mistakes to Avoid as You Build a Profitable Business

September 18th, 2012

Where do small business owners go wrong when trying to build a profitable business? Many mistakes can be traced back to such things as not being consistent in preforming some of the most crucial tasks required for a business to function. But there are also mistakes made by not taking a task to completion, trying to take too many tasks to completion, spending time on the wrong tasks, not having procedures in place for the most crucial tasks, and hiring the wrong people for the tasks you expect them to accomplish.

Avoiding these 6 mistakes can save you time, money and a lot of frustration. So as you move your business toward your goals of profit and growth, here are some mistakes you may want to avoid or fix.

1. An Inconsistent Marketing Effort
Marketing may well be the most important task a business must perform. For many, marketing efforts are like a roller coaster ride, up and down based on how busy you are or how sales are doing. If your marketing is sporadic, it’s likely your results will be the same. The key to attracting and retaining customers is consistency. It is better to do 3 or 4 lead generation strategies well and consistently than doing a dozen of them periodically.

2. No Follow Up
Investing resources to generate leads for your company without a proven method to convert them to paying customers is costly. No matter how potential customers come to you, a system for consistent and timely follow up is a key to sales growth. Take the time to develop a procedure for turning prospects into customers. Take advantage of technology, templates and scripts for efficiency and effectiveness. If you are not consistently following up on your marketing, you are not completing the marketing task. Be consistent and watch your sales soar.

3. Doing it all Yourself
Most small business owners became entrepreneurs because they are experts or skilled at something and believed they could do it better than others. But building a successful business requires more than technical know-how. No one is an expert at every task, so supplement yourself with other experts to fill in the gaps. Whether you hire employees, sub-contract work, create joint ventures, work with coaches, consultants or develop strategic alliances, the support you need is available. Don’t try to do it all yourself.

4. Not Identifying Your Customer Profile
The best products or services will go unsold if you are talking to the wrong people, those who will likely never buy. If you invest your time and money promoting your products or services to people who don’t have the resources, authority or need, today or in the near future, you will have spent your time on costly frustration. Who are the ideal customers for YOUR products and services? Do your research, find out who and where they are, how to reach them, and then apply your resources to pull them in.

5. No Procedures
Documented procedures for all your company’s critical tasks and operations is a key to efficiency, consistency, continuous improvement and profitability. Defining the important tasks crucial to a business is often ignored. This mistake becomes obvious when you hire and train new people, only to start losing customers due to poor service or missed deadlines. Don’t expect your employees to have your clarity of vision. They will need to know exactly how to do their work if they are to do that work successfully. Take it one at a time, but make written procedures a priority in your business. The results will surprise you

6. Hiring on the Fly
Are you quick to hire and slow to fire? That phrase describes many small businesses. A strong team of people to support your operations is certainly important, but only if they are the right people. There are proven hiring systems and tools, including a job description and clear goals, to help small businesses attract and retain quality people. Always hire with a purpose, invest in training, commit to developing your team and be willing to let go of those who don’t fit.

Which of these mistakes are impacting your profit and growth? Make it a priority to fix them, one at a time if necessary. The sooner you do, the sooner your sales and profit will grow.