Seven Deadly Mistakes Of Small Business

Being in business and staying in business is one of the greatest challenges that an entrepreneur faces. There are no ‘rules’, no ‘courses’ or ‘seminars’ that can explain exactly how things will turn out. On one hand running a business can be fun, exciting, creative and interesting. On the other hand, it can be nerve-racking, tiring and challenging.

Being aware of potential business problems before they arise is one way to avoid business incidents and failure.
Steve Strauss, a respected business columnist in the US identified seven deadly sins that small businesses commonly make. The following briefly discusses the seven deadly sins identified:

1. Financial mismanagement
– Financial mismanagement can include any one or all of the following:
– Undercapitalisation: A common and often telling mistake when starting up a business is not having enough money invested in the business from the word “go”.
– Too much overhead: If cash flow is the life-blood of a business, then high overhead is the Dracula that will suck it out – often with terminal consequences.
– One of the best pieces of advice for new businesses is “keep your overhead low.”
– Too much debt: Like overhead, too much debt can cripple a business.

2. Failure to plan and brand
– It’s easy for a business owner to get caught up in the day-to-day running of the business and fail to see the big picture. Knowing where to go, and planning how to get there is essential to achieving business success.
– This is especially true when it comes to branding, a business owner must know what it is they are promising customers/clients (i.e., the business brand), and then reinforce that promise with their actions.