Hired the wrong employee or just can’t seem to get on top of your cashflow? You’re not alone. Here’s a look at the five most common areas SMB owners get it wrong, and some advice for fixing these issues.
The five most common mistakes small businesses make are:
- Hiring the wrong employees. Your staff members are the lifeblood of your business and having employees who are unproductive, unskilled in the job they have been hired to do or just the wrong personality type for your business can cause frustration for you and your customers, not to mention lost profits and recruitment costs. Are your employees the best fit for your business? If not, it is worth looking at your recruitment process and possibly engaging the services of an external party to help you screen potential employees in the future.
- Keeping the wrong employees for too long. Having unproductive staff working in your business can not only harm you financially in the long term, it can put your business in a vulnerable position culturally. Negative staff members who have been with the business for too long can affect the morale of others and this could spread to the entire company. Make sure you deal with employee issues quickly and don’t be afraid to bring in fresh blood if necessary.
- Having no clear plan or goal. Many business owners neglect to take the time to sit down and clearly define their business goals. Having goals gives your business a roadmap towards success and allows you to stay focused and on track with your efforts. Without a plan you may find yourself floundering around with no idea where you are going.
- Poor financial management. Cashflow problems can lead to debt and financial difficulties. Make sure you have a good system in place to chase up debtors and keep on top of any your financial obligations. Lax financial management can potentially lead to legal as well as financial difficulties so it is important to make your business finances a priority.
- Not seeking professional advice. Whether you engage the services of a professional business coach or run a few ideas past a business savvy friend, having an outside perspective can make a huge difference to the success of your business. Many business owners get tunnel vision from following a single way of thinking, and although you run your own business, you may not be a business expert.
There is always something to learn and improve on when you run a business, no matter how far along your business journey you are. Running a business is often trial and error, particularly at the beginning and we all make mistakes while we are finding our way. Take the time to evaluate the state of your business, your employees and your goals and you could find it pays off in terms of profit and future success.