Small businesses face big challenges! When only one-third of all small businesses make it to 10 years in business, it’s vital to be proactive and recognize your mistakes before they end your dreams of success. Read ahead to learn how to beat the odds:
Mistake #1: Leaving Bills Unpaid
Paying the bills isn’t negotiable. If your cash flow is suffering to the point that you’re wondering how long you can delay paying your electric bill before they shut off the power, there’s a serious problem that needs addressing.
Mistake #2: Thinking Bigger = Better
Big business approaches don’t always prove effective for small businesses. Instead of trying to make those strategies work, embrace your small business status and focus on approaches that are better fitted to your business model.
Mistake #3: Focusing on One-Time Sales
It’s easy for business owners to focus on individual sales, yet it’s the long-term relationship or lifetime value of a customer that you need to invest in. Focus on making the customer happy and keeping him on board: customer acquisition is costly! Customer retention is much cheaper.-
Mistake #4: Overspending on Marketing
Marketing isn’t cheap, but it provides a positive ROI when executed properly. Instead of investing a significant amount on a massive marketing campaign, try small, paid marketing tests first so you can gauge the results without over-investing. Increase your spend once you’ve achieved a positive return on your initial smaller investment.
Mistake #5: Operating by Reaction
If you’re spending most of your day responding to emails and “putting out fires”, you may need to take a more proactive and productive approach to managing your small business by researching ways to grow and improve, and delegating those other tasks.
Mistake #6: Being Stuck in Your Ways
You know what they say about old dogs and new tricks? It doesn’t apply to business! Businesses succeed by being dynamic and changing to beat the competition. Read a business book published in the last year and take something new from it! Be a student of your business and industry. Emulate what other successful businesses in your industry are doing, but do it better, faster or cheaper.
Mistake #7: Treating Employees Harshly
Your team is your backbone, so don’t let them feel unappreciated. Cut them some slack when they make minor mistakes, and be kind when providing constructive feedback. Most importantly, show them you appreciate them by praising them when they’re doing great. Make sure to provide the training they need to succeed and you, your customers and employees will all benefit!
The information shared is intended to be used for informational purposes only and you should independently research and verify.
Note: Prior to January 23, 2020, Mulligan Funding operated solely as a direct lender, originating all of its own loans and Merchant Cash Advance contracts. From that date onwards, the majority of funding offered by Mulligan Funding will be by Loans originated by FinWise Bank, a Utah-chartered Bank, pursuant to a Loan Program conducted jointly by Mulligan Funding and FinWise Bank.