The Top 10 Mistakes Business Owners (Big or Small) Make
Whether you think you are doing really well or you are not, it never hurts to take a step back every 3-6 months and re-evaluate how you are doing and how well your business is really performing. No matter how large or small your business is, you cannot gauge the effectiveness of any changes you’ve made without analyzing the benefits and bottom line.
1) The business mantra of yourself and every single one of your employees should be simply this, ““EVERY member of our team who, in any capacity, comes in contact with our customers, is a salesperson, and the impression he or she makes, good or bad, is a lasting advertisement!” (quoted from Fast Company).
2) Do you know what PR is and how to use it to positively position your business in the media? I’ll bet your competitors do. Nearly every mention of a company or business in the newspapers and magazines is a direct result of publicity efforts. Being quoted or featured in an article speaks volumes to your clients and readers who are your potential prospects. A good PR consultant can do that for you and show you ways to extend the shelf life of that article beyond its publication.
3) Do you consider training and coaching, an expense or an investment? I believe how you look at the money spent on your eduction affects your willingness to spend money at all. Would you look at prescriptions as a waste of money?
How is your financial health any different or less important than your physical health? Training and coaching is an investment in you, the future you envision for yourself, and your company.
4) Do you have a sound prospecting and/or marketing plan in place? It takes time to build a profitable business. It takes time for your marketing efforts to start producing results. According to the Small Business Administration, the number one reason why businesses fail, is lack of financing. I think their wrong, I think it’s lack of planning and lack of sales.
Did you know that 50% of all new businesses fail within the first year? And that 95% of all new businesses fail within the first 5 years! Don’t be caught into thinking it won’t happen to you. Sales is the lifeblood of your organization, nothing superceeds sales.
5) What percentage of your business is from repeat customers? This is important to know because if it’s too low, then it needs to be improved. The estimated cost of getting a new customer versus retaining an existing one can be as much as five to one in terms of dollars spent. Keeping customers is more cost-effective than constantly seeking new ones. The next question you need to ask yourself, when is the last time we offered a new product or service? Have you conducted any market surveys from your present clients to see what kind of products or services they want to see from you? Loyal customers want to stay loyal, don’t make them go to competitors to get newer more innovative solutions.
Also, how do you build customer loyalty? If your customers don’t feel special when coming to you for products of services, why should they stay with you? Have a customer appreciation day or a special invitation only sale for your regulars. Create a mailing list of your regulars. Send occasional post cards or greeting cards for Christmas, special events or just to keep in touch. Learn to recognize them on sight and greet them by name when they visit you.
6) Do you have all of your systems in place? Do all of your prospecting and marketing pieces lead to one place? Does that one place convert visitors to buyers? Do you have systems in place to build relationships with your clients and to further solidify your relationships with current customers?
7) Do all of your sales and marketing materials project an image of professionalism? Do your customers fully understand the benefits of doing business with you? What problems do you solve for people? Is this reflected in your literature and your communication with prospects?
8 How long has it been since you really talked to one of your customers? Just as you appreciate when your Doctor takes time to talk to you, your customers will appreciate you if you take an interest in their needs. If you have a service business, have lunch or coffee periodically with some regulars – even if they only contact you once or twice a year. The personal touch in an impersonal world will be remembered.
9) How is your business doing compared to your competition? Every company, no matter what the size, has competition – even home-based businesses. Is their business growing or downsizing? Is their pricing or service better than yours? If so, what can you tell potential customers about the price difference? Think about how you can improve your service to meet or exceed your customer’s expectations.
10) If you have employees, are they happy? Don’t ask them directly, but observe them throughout the day. Watch, listen and learn. Employees who like their jobs don’t watch the clock for quitting time, aren’t habitually late, don’t have poor body language, don’t spend time on personal phone calls, and don’t look like they never smiled. Observe how they interact with customers. Not everyone is a match for direct contact with the public, so make sure you don’t have an employee who is driving business away.
Remember the old business manager adage, hire slow, fire fast.
And here is your bonus tip, when is the last time you really took a vacation? Don’t burn yourself out!
Kevin Boyle
Author / Public Speaker / Sales Trainer and Coach
“The Secrets to Sales Mastery”
ps – Did you enjoy this post? Do you have any tips on other things business owners should watch out for? Please feel free to add your comments!
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