Mistakes Made by Small Business Owners

Entrepreneurial ventures are fraught with missteps, mishaps, and mistakes. The key to your success is to quickly identify your mistakes, learn from them, and prevent the same mistakes from happening again.

Most business owners fall into the same traps. It’s those mistakes which could make the difference between owning a successful and viable small business.

So, what are the biggest mistakes owners make when starting and managing their small businesses? 

Trying to Do It All

The greatest mistake entrepreneurs make is to believe they can do it all by themselves. While an entrepreneur can do almost everything, they do almost everything poorly. Just like any other person, an entrepreneur has one or two natural talents. As an entrepreneur, it is your job to identify those talents and focus on them to your fullest. Surround yourself with people who are strong where your talents are weakest. Great companies are built on the foundation of exploiting a few strengths, not on trying to be masters of everything.

Not Being Forthright

The anonymous nature and grand size of the Internet allows people to share anything with anyone at anytime. If your business tries to cover up a mistake, it is just a matter of time before word leaks and you are labeled a liar. That's not good for business. Be the one to break your own bad news, and you will be perceived as honest and trustworthy.

Having No Clear Marketing Strategy You 

You never know where, when, or how a new prospect is going to hear of your business. If you have a mix of messages out there, the prospects will have an unclear expectation of what your business can offer. Your company must present a consistent, clear message on all fronts. You will never get a second chance to make a first impression. Make sure every new prospect who sees your business for the first time receives the same, consistent message.

Cutting Prices

Often, the first thing entrepreneurs resort to when business is tough is to try differentiating on price. Cheaper prices mean more customers, right? Wrong! Most customers are willing to buy more expensive items because of the greater quality or the added convenience. During tough economic times, an increase in price, coupled with improvements in quality or convenience, can drive customers to your door. Price slashing is a dangerous game, which could lead to slashing employees or salaries to keep costs down.

Having No ‘Rallying Point’

There is a reason why employees leave high-paying corporate jobs to go to start-ups, and it's not for the money. People are driven to serve an important purpose, in addition to getting a paycheck. Many businesses never define their real purpose for existence, and continually attract a mix of employees who are seeking success in different ways. Clarify the purpose of your company, beyond just making money, and you set the stage for attracting like-minded employees. A team focused on the same goal is a very powerful force.

Setting Unrealistic Financial Goals

If all business plans came true, being a billionaire would be nothing extraordinary. Many entrepreneurs go into new ventures planning astronomical returns. Yet most never even get the business off the ground. Unrealistic goals not only hurt your credibility, but can also be an emotional drain. Set specific, measurable, accountable, realistic, and time specific (or SMART) goals to ensure continual progress. If you do this, your chances of being an overnight success (in 15 to 20 years) are much greater!

Being All Business, All the Time

Many entrepreneurs put their personal lives on hold to focus exclusively on their businesses. Ultimately, both suffer. There is no question your business needs your full attention and effort, but only in short spurts. Just like an elite athlete in training, you need to have a proper, healthy diet, get enough rest, and take breaks. Balance your personal and business life, and you will actually do better in both.

Being a Weak Leader

The success of your company is contingent on you being a strong, effective leader. This does not mean you need to be an authoritarian, but you also shouldn't be everyone's buddy. A great leader sets the course for the company, communicates it constantly, and inspires the team to get to the next level.

Assuming You Have No Competition

Even if you have the latest, greatest, never-been-done-before approach to something, don't assume that you have no competition. Competition is more than just the direct, obvious competitors. Competition is also all the available alternatives. What else could the consumer do instead of using your product or service? Could they do nothing? The customer almost always has the option of walking away. That alone is a serious competitive threat.

Trying to Get Rich Quick

Overnight success usually takes 15 to 20 years to achieve. If you go in expecting to be rich overnight, you may become discouraged early on and give up your dream prematurely. 

Know that success takes time, perseverance, and a little bit of luck. Give your business the time to grow. Only if your company is stagnant for a long time should you take it as an indication that you need to try something new.

Mistakes that Prevent People from Achieving

There are many people who try to achieve what they desire in life. Unfortunately, many people don’t accomplish what they set out to do.

Here are some of the top mistakes that people make, and ways in which these can be avoided.

1. Setting timescales that are impossible to reach 
   
   
   Often, people will set totally unrealistic time frames to achieve goals in their lives. Before deciding on a completion date, take careful consideration of your other commitments. Don’t expect to be able to devote 3 hours every night to a particular goal if you only have one hour of spare time!
   
   
   
2. Failing to write down goals 
   
   
   You must commit your intentions to paper to know exactly what you are aiming for. This also acts as a form of contract with yourself, and you are therefore much more likely to carry it through.
   
   
3. Setting goals that are not going to make a marked difference to their lives 
   
   
   Achieving is hard work, so you want to make sure that the benefits of accomplishing your goal will far outweigh all of the effort that has gone into it.
   
   
4. Failing to consider the true extent of the work that needs to be done to achieve the result 
   
   
   Before starting on the road to a particular goal, carefully consider what is actually involved to ensure a successful outcome.
   
   
5. Setting goals that are far beyond their own capabilities 
   
   
   Be honest with yourself. Are you going to be mentally and physically able to achieve your goal?
   
   
6. Trying to achieve something that they do not enjoy doing 
   
   
   A sure way to get your motivation plummeting is to attempt to achieve something that you hate doing. Life is to be enjoyed, so avoid setting goals that aren't going to fulfill you.
   
   
7. Expecting far too much of themselves 
   
   
   The challenges that you set yourself should stretch you, but you shouldn't be setting yourself up for failure by setting goals that will be too difficult to accomplish.
   
   
   you control two things in your career; your attitude and your activity.