The first few years of owing a local small business is going to be the toughest. You have to establish yourself in your community, establish rapport with other local small business owners and make a name for yourself in your area. Many locally owned, independent small businesses fail for the following 3 reasons:
Reason #1: Not really in touch with customers.
Reason #2: No real differentiation in the market.
Reason #3: Failure to communicate value propositions in clear, concise and compelling fashion.
Even after your business moves from the red to the black, an independent small business such as yours will still need to operate strategically, and prudently. to be careful. There are always going to be potential mistakes that arise and how you maneuver through them will make all the difference.
What Mistakes Am I Making As A Small Business Owner?
Let’s talk about some of the more glaring mistakes you will want to avoid:
1. Skipping out on market research: If you constantly feel as though you aren’t getting to your ideal target market, the reason might be due to a lack of market research on your part. There are analytics tools and services that can help you as a small business owner.
2. Trying to do everything: Even as a local small business owner without a massive budget, it's important to delegate. If you can't afford to hire, you may want to consider outsourcing, or use services like Upstart. The costs involved with outsourcing certain aspects of running your business tends to be much lower than the costs involved in trying to do absolutely everything on your own.
3. Not vetting your staff carefully enough: Failure to do so can waste time and money.
4. Build it and they will come mentality: Do NOT have the mindset, build it and they will come: Never assume customers are coming. It's imperative you go out and find your customers.
5. Too involved: Take a step back! We like to be connected to our business, but for small business owners, defining yourself by your small business can be harmful on several levels.
6. 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.Do you expect overnight brick and mortar success? This can lead to early discouragement.
7. No understanding of competitors: Are you paying attention to their efforts? It's important to know what your competitors do, and how they do it.
Failure in business does not define our competence or ability to make it; failure is part of the process and is in itself an experience which we can use as an asset, to learn from and propel us forward. There are many hard resources required to make a business. However, the way we manage ourselves and our emotions is one of the most important assets that will propel us forward.
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