10 Deadly Business Owner Mistakes to Avoid
10 Deadly Business Owner
mistakes that can cost entrepreneurs their business!
1. All Sales No Delivery
Sales are the first element of business,
without sales you don't have a business. However when a business fails to deliver on its customer promise; late
delivery, absent functionality, over promised service coupled with underwhelming reality; the buyer feels
cheated. The business risks entering a death spiral. There spiral where sales staff spend more time placating
current customers rather than finding new clients. Marketing spends more time on public relations rather than
highlighting key product benefits. Staff moral drops due to staff feeling uncomfortable being associated with a
poor brand. Eventually you'll have nothing to deliver.
2. The Distracting dog of an idea
The distracting dog of an idea occurs where
the business owner loses focus on its core business. An opportunity arises that seems like a good idea at the time,
but on reflection has very little to do with the skills, knowledge or intangible assets that form the
foundations of the company's natural strengths. The distracting idea absorbs resources and shifts the focus of
staff away from maintaining and delivering customer satisfaction in your core business. You eventually lose market
share.
3. Out Dated Infrastructure
A business fails to focus
on innovation and process improvement, either through internally developed assets or
investment tools, equipment or technology. This leads to uncompetitive cost structures or
product/service functionality. Your business eventually becomes uncompetitive as yesterday’s cutting edge service
becomes today's customer norm.
4. Nothing Ever Changes
Living with the false sense of security that
tomorrow’s market will be the same as today's. Selling & marketing practices remain the same, customer
expectations remain the same, market forces remain the same, staff expectations remain the same, social conditions
remain the same. Actually nothing remains the same.
5. It’s all my staffs fault
Instead of spreading enthusiasm about the
customer experience and taking staff on the business journey, every problem that arises is blamed at the feet of
staff members. Instead of engraining a positive culture, a culture of excuse and denial festers. The business
owner becomes drag into every decision, no matter how small as staff avoids taking responsibility in fear of being
assigned blame. Instead of embedding process, replicating efficiency and instilling an innovative culture, the
work day becomes a daily fire fight.
6. Books cooked beyond recognition
The over complicated company structure is
coupled with under whelming product/service margin information provides uncertainty and obscure clear decision
making. How does this happen? When sales are rapidly growing exotic advice is provided on company
structures involving various company transfers to minimise tax liability. However an unintended
consequence is complications with understanding clearly product and service profitability. The
seeds sowed with over complicated accounts only come home to roost when the company is nolonger
performing as well as its glorious past; partly due to poor decision making from poor margin information.
7. Marketing mismatch
A great marketing campaign that does not match
market expectations for the product or service; Everybody knows about your product but few people really understand
what you have to offer. The marketing campaign has a great catchy jingo, but the jingo although memorable doesn't
entice you to buy. The marketing effort simply does not resonate. The marketeers have failed to
understand the buyers.
8. No Plan B
Even the best laid plans can be the victim of
unfortunate circumstance. What is your plan B if or when that unexpected event occurs? How will you operate out of
a difficult circumstances? If you don't have a plan B, you may never get the chance to revisit plan
A.
9. Caged by the Business
Failing to recharge, delegate, take time out
to gain new perspectives, you become trapped in the cycle of doing for doing sake. You fail to stop and think
about 'doing' more efficiently, leveraging that knowledge you have, understand where your skills are best placed
and move forward more effectively. You risk your health and burn out!
10. I know everything
Not taking advantage of the skills and
knowledge around you; You risk failing to move with the changing business environment. That knowledge may be held
by your staff, associates or alliances. Investing in refreshing your knowledge base, understand the
changing business conditions, acting with certainty when delivering customer satisfaction. There is always
something new worth knowing.
Why make avoidable mistakes, speak to your
business performance advisor to maintain your business success.
Business Performance Advisory
Corporate Performance Services
Premiership Business Equation
for more information contact Putney Breeze Business Advisors
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